Cancer, a devastating disease is a significant cause of mortality in recent times, continues to pose formidable challenge in terms of finding effective treatments. In this context, we present a pioneering approach that combines bone tissue regeneration, hyperthermia and controlled drug delivery using nanocomposites composed of 85S (85SiO2–10CaO-5P2O5 (mol%)) bio-glass and cobalt ferrite (CoFe2O4) nanoparticles, synthesized using Stober's method and a modified microwave reflux method, respectively. The formation of hydroxyapatite (HAp) layer after immersion in simulated body fluid (SBF) is confirmed through XRD, FTIR, and SEM measurements. Among all nanocomposites, 7.5 wt% of cobalt ferrite with 85S bio-glass (CFO_7.5) demonstrates the maximum formation of a HAp, indicating its potential for bone tissue regeneration. MTT assay confirms the remarkable biocompatibility against MG-63 osteoblastic cells, displaying higher cell viability of about 220% after 72 h for CFO_7.5. Significantly, it also demonstrates remarkable antimicrobial activity against both E. coli and S. aureus cells. Although M vs H measurements show superparamagnetic behaviour at room temperature for all the nanocomposites, CFO_7.5 exhibits a gradual and consistent heating rate, making it an ideal thermo-seed material for hyperthermia applications. Besides, 80% of drug loading and 97% of cumulative release at 7.4 pH has been observed in CFO_7.5 due to its mesoporous structure and high surface area confirmed from BET analysis. In-vitro experiments provide compelling evidence of the remarkable bioactivity, potent antimicrobial and sustained drug release capabilities along with the ability to generate controlled heat that makes CFO_7.5 a potential candidate for hyperthermia and control drug delivery in treating cancer.