With about two-thirds of global energy being lost as waste heat, improvement in the mutual conversion of heat and electrical energy is a "must" with the continued growth in demand. The present report investigates the dramatic improvement of thermoelectric performance (ZT) in a well-studied system by utilizing the intrinsic magnetic field generated from within the material. The concept was to utilize the intrinsic magnetic field induced by the randomly dispersed multisized magnetic (FeSb) nanoparticles spread throughout the host TE material (Bi−Sb). It thus modified the transport properties, i.e., electrical/thermal conductivity and Seebeck coefficient, so as to give a record jump of ∼155% in the peak ZT of the referenced material and increased it to 0.79 from 0.32. Interestingly, the application of an external magnetic field further increased the ZT by ∼57% (i.e., from 0.79 to 1.26), thus giving an overall improvement of ∼300% (from 0.32 to 1.26) as compared to the referenced material. What is particularly exciting is that this simple idea of modulation doping of ferromagnetic nanoparticles can also be extended to other important thermoelectric materials.