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Abstract Multifunctionality as a paradigm requires materials exhibiting multiple superior properties. Integrating second‐order optical nonlinearity and large bandgap with piezoelectricity can, for example, enable broadband, strain‐tunable photonics. Though very different phenomena at distinct frequencies, both second‐order optical nonlinearity and piezoelectricity are third‐rank polar tensors present only in acentric crystal structures. However, simultaneously enhancing both phenomena is highly challenging since it involves competing effects with tradeoffs. Recently, a large switchable ferroelectric polarization of ≈80 μC cm⁻²was reported in Zn_1‐xMg_xO films. Here, ferroelectric Zn_1‐xMg_xO is demonstrated to be a platform that hosts simultaneously a 30% increase in the electronic bandgap, a 50% enhancement in the second harmonic generation (SHG) coefficients, and a near 200% improvement in the piezoelectric coefficients over pure ZnO. These enhancements are shown to be due to a 400% increase in the electronic anharmonicity and a ≈200% decrease in the ionic anharmonicity with Mg substitution. Precisely controllable periodic ferroelectric domain gratings are demonstrated down to 800 nm domain width, enabling ultraviolet quasi‐phase‐matched optical harmonic generation as well as domain‐engineered piezoelectric devices.