Exchange bias effect in Au‐FexOy nanocomposites, prepared with regulated Au:Fe content, has been controlled using the variable iron content and the composition of FexOy. A green synthetic route has been adapted at room temperature in aqueous medium for such Au−Fe oxide nanocomposites. Diversity in FexOy compositions has been achieved through Au(III) reduction by Fe powder to obtain Au‐FexOy nanocomposites in presence of gold nanoparticles as seed and threshold amount of sodium citrate as stabilizing agent. The exchange bias effect in selective Au‐FexOy nanocomposites (5Fe, 6Fe, 7Fe and 9Fe) arises from the ferromagnetic‐antiferromagnetic (FM‐AFM) interaction between Fe3O4 and α‐Fe2O3 present in the samples. A theoretical model is used to explain the variation of the exchange bias, coercivity and magnetization for the different samples at various temperatures. These Au‐FexOy nanocomposites have been compared in terms of their catalytic activities for nitroarene reductions and reversible surface interaction with cancer drug doxorubicin.