A magnetically separable NiFe2O4@GO–Pd composite (GO = graphene oxide) was successfully prepared by a facile one‐pot hydrothermal strategy. This new kind of hybrid material was fully characterized using powder X‐ray diffraction, Raman spectroscopy, X‐ray photoelectron spectroscopy, transmission electron microscopy and vibrating sample magnetometry. Structural characterizations confirmed the formation of NiFe2O4 and Pd nanocrystals, and the close anchoring between nanoparticles and GO sheets. Additionally, the as‐prepared NiFe2O4@GO–Pd nanocomposite was effectively employed in the palladium‐catalyzed Heck reaction in an ethanol–water system as a green solvent. The catalyst was completely recoverable with the simple application of an external magnetic field and with no obvious loss of catalytic activity even after six repeated cycles. Copyright © 2016 John Wiley & Sons, Ltd.