Abstract The fields of soft magnetic composites and powder metallurgy technologies have a powerful potential to redesign the way of electric motor preparation, and will continue to grow for years to come. A design of the novel soft microcomposite material composed of spherical FeSi particles and Ni0.3Zn0.7Fe2O4 ferrite nanofibers is reported together with a characterization of basic mechanical and electrical properties. The needle-less electrospinning method was used for a preparation of Ni0.3Zn0.7Fe2O4 ferrite nanofibers, which has a spinel-type crystal structure as verified by XRD and TEM analysis. The dielectric coating was prepared by mixing of nanofibers with glycerol and ethanol because of safe manipulation with fumed fibers and homogeneous distribution of the coating around the FeSi particle surface. The final microcomposite samples were prepared by a combination of the traditional PM compaction technique supplemented with a conventional sintering process of the prepared green compacts. The composition and distribution of the secondary phase formed by the spinel ferrite fibers were examined by SEM. It is demonstrated that the prepared composite material has a tight arrangement without any significant porosity, which manifest itself through superior mechanical properties (high mechanical hardness, Young modulus, and transverse rupture strength) and specific electric resistivity compared to the related composite materials including resin as the organic binder.