AbstractAs an emerging field of current technological development, the heat dissipation performance of electronic packaging materials has become the key to determining product reliability. Therefore, the applied thermal interface materials (TIMs) need to simultaneously meet the performance indicators of thermal conductivity, mechanics, and insulation. Although BN had excellent in‐plane thermal conductivity and insulation performance, it is currently difficult to achieve vertical orientation of powder which leads the layered powder cannot complete a continuous and effective heat transfer path along the Z‐axis direction inside the composite material. In order to solve the above two problems, out‐of‐plane thermal conductive composite was prepared by introducing magnetic oriented method. In order to comprehensively evaluate the thermal conductivity, mechanical and electrical properties, BN@Fe3O4/EP magnetic oriented composites were compared with BN@PDA‐Al2O3/EP composite prepared by mechanical blending method. The vertical thermal conductivity of the magnetic oriented composite material was 2.24 W/(m·K) at 30 vol%, which was 3.39 times that of the blended composite material and 12.4 times that of pure EP. This proves that the magnetic oriented composite materials prepared by the research institute can meet the vertical heat transfer needs in the field of electronic packaging and have high research value in this area.Highlights BN@Fe3O4 core–shell particles were prepared with both thermal conductivity and magnetic controllability. The thermosetting composites were prepared by heated through preliminary gel point and then cured at high temperature. The orientation of powder inside the matrix was constructed, resulted in excellent out‐of‐plane heat transfer performance. Comparisons were made between various properties of magnetic oriented materials and conventional blend materials. The magnetic orientation method is feasible in the field of electronic packaging.