Aqueous floral extracts of Callistemon viminalis were used to synthesize Fe₂O₃ nanoparticles (IONPs) which were intensively characterized through UV–vis, X-ray diffraction, HR-SEM/HR-TEM, Fourier- transform infrared spectroscopy (FTIR) and energy dispersive X-ray spectroscopy (EDS). Their physical properties were studied in response to different annealing temperatures. It was observed that the increase in the annealing temperature produced small-sized nanoparticles. The nanoparticle size was calculated as 32, 26 and 22 nm for annealing at 300, 400 and 500 °C, respectively. The magnetic nature of the bioinspired IONPs was revealed by superconducting quantum interference device (SQUID). Their antibacterial potential was investigated against nine pathogenic bacterial strains (gram positive and gram negative) using disc diffusion method while their MIC was calculated using broth dilution assay. Bioinspired IONPs were found to be highly effective against HepG2 cells (IC₅₀=20 µg/mL). Moderate antileishmanial activities against the promastigotes and amastigotes cultures are reported. Moderate acetylcholine esterase (AchE), butylcholine esterase (BchE) and α-Glycosidase inhibition are reported. Additional assessment of the biocompatibility was performed using haemolytic activity on the freshly isolated human red blood cells and macrophages. Furthermore, the antioxidant activities, including TAC, DPPH and TRP were also performed. Our results indicate that the biogenic and magnetic Fe₂O₃ can be used for diverse biomedical applications.