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Abstract Mott insulator VO₂exhibits an ultrafast and reversible semiconductor‐to‐metal transition (SMT) near 340 K (67 °C). In order to fulfill the multifunctional device applications, effective transition temperature (T_c) tuning as well as integrated functionality in VO₂is desired. In this study, multifunctionalities including tailorable SMT characteristics, ferromagnetic (FM) integration, and magneto‐optical (MO) coupling, have been demonstrated via metal/VO₂nanocomposite designs with controlled morphology, i.e., a two‐phase Ni/VO₂pillar‐in‐matrix geometry and a three‐phase Au/Ni/VO₂particle‐in‐matrix geometry. EvidentT_creduction of 20.4 to 54.9 K has been achieved by morphology engineering. Interestingly, the Au/Ni/VO₂film achieves a record‐lowT_cof 295.2 K (22.2 °C), slightly below room temperature (25 °C). The change in film morphology is also correlated with unique property tuning. Highly anisotropic magnetic and optical properties have been demonstrated in Ni/VO₂film, whereas Au/Ni/VO₂film exhibits isotropic properties because of the uniform distribution of Au/Ni nanoparticles. Furthermore, a strong MO coupling with enhanced magnetic coercivity and anisotropy is demonstrated for both films, indicating great potential for optically active property tuning. This demonstration opens exciting opportunities for the VO₂‐based device implementation towards smart windows, next‐generation optical‐coupled switches, and spintronic devices.