The current manuscript elucidates Ficus benghalensis (F.B.) leaf extract‐mediated green synthesis of Fe3O4 nanoparticles as magnetic support for the synthesis of novel Fe3O4@Ag‐S‐CH2‐COOH magnetic nanocomposite. The structure of Fe3O4@Ag‐S‐CH2‐COOH is confirmed by various characterization techniques such as FT‐IR, XRD, SEM, HR‐TEM, BET, and VSM analyses. Catalytic potential of Fe3O4@Ag‐S‐CH2‐COOH was tested for the syntheses of novel 3,4‐dihydropyrimidin‐2(1H)‐ones through one‐pot Biginelli reaction of aryl aldehydes, urea, and avobenzone. The Fe3O4@Ag‐S‐CH2‐COOH exhibited outstanding catalytic activity towards Biginelli reaction and could be easily separated from the reaction mixture by an external magnet. Interestingly, catalyst could be recycled for four successive turns without considerable loss in the catalytic activity. The structure of novel 3,4‐dihydropyrimidin‐2(1H)‐ones were confirmed by FT‐IR, 1H, 13C‐NMR, mass spectrometry, and single crystal X‐ray diffraction technique. Synthesized novel 3,4‐dihydropyrimidin‐2(1H)‐ones were tested for anti‐cancer activity against human liver cancer cell line Hep‐G2 along with anti‐angiogenesis study and confirmed by molecular docking investigations.