Silicone rubber (SR) has extensively been used for different industrial and biomedical applications, in view of its good elasticity, chemical inertness, and biocompatibility. However, cure inhibition features, poor mechanical properties, and hydrophobicity, often, limit the possible expansion of its spectrum of applications. The present work has been designed to address these issues by embedding a potential biocompatible filler, nano‐hydroxylapatite (n‐HA), within the SR matrix, through compression molding. The n‐HA particles were initially synthesized by a wet chemical method, and were subsequently introduced into SR quantitatively. The rheological features, compressive properties, simulated body fluid (SBF) uptake, bovine serum albumin (BSA) adsorption, blood compatibility, and cytocompatibility of n‐HA modified SR systems have been investigated. The change in rheological characteristics after n‐HA embedding within SR clearly indicated the favorable interactions between them, and a compatible functional existence under external stresses. The compressive strength, which is critical for the different applications of SR, has been found to be increased with an increase in n‐HA loading. In‐vitro mineralization studies using SBF showed the formation of apatite crystals on the surface of SR/n‐HA system indicating its biocompatibility. This has been confirmed by SEM and FTIR examinations. It has further been observed that the addition of n‐HA particles into SR matrix enhances the protein adsorption characteristics. The n‐HA embedded system exhibited excellent blood compatibility, which has been complemented through hemolysis (%) studies and thrombogenicity assay. The results indicate that the strategy of n‐HA embedding would do significant value addition to SR, and widen its scope in the industrial and biomedical sectors.