A controlled, one-step ammonolysis method with three different Fe/Ga ratios (70:30, 50:50, and 30:70) was used to synthesize functional nanocomposite materials consisting of 30−40 nm particles of γ′-Fe4N Fe4−x
Ga
x
N phases in a GaN and Fe-doped GaN phase matrix. The γ′-Fe4N, Fe4−x
Ga
x
N, and GaN phases were confirmed by the Rietveld analysis of the X-ray diffraction patterns, and the Fe-doped GaN phase was confirmed from Mössbauer spectroscopy and magnetization measurements. The magnetization of the superparamagnetic nanoparticles was expectedly reduced with the Ga incorporation in the samples. The coexistence of antiferromagnetic Fe4−x
Ga
x
N and the ferromagnetic γ′-Fe4N phases resulted in an exchange bias effect (hysteresis loop shift of 28 Oe at 5 K) and a gradual magnetic phase transition from 250 to 55 K. Mössbauer spectroscopic analysis showed a hyperfine magnetic field distribution that the ab initio calculations duly supported. Ab initio calculations of the equilibrium lattice and Mössbauer hyperfine parameters were also performed.