The utilization of nanotechnology based ameliorative strategies has emerged as an effective method to reduce the potential toxicity of environmental stressors on crops. However, there is limited information available regarding the interaction of silica-coated iron oxide nanocomposite (Fe3O4@SiO2, NCs) with plants under abiotic stress. Therefore, the objective of this study was to investigate the effects of different doses of silica-coated iron oxide nanocomposite (NCs) in mitigating Cd phytotoxicity in rice. The results revealed that Cd-contaminated soil inhibited plant growth, reduced physiological attributes, and induced ultrastructural changes in stressed plants. The presence of Cd in the soil also reduced rhizospheric soil pH and soil enzyme activities while increased Cd bioavailability and its uptake in plants. However, the foliar application of silica coated iron oxide NCs stimulated plant biomass production, chlorophyll biosynthesis, and antioxidant capacity. The application of NCs significantly decreased the activities of lipid peroxidation markers (MDA, EL and LOX) and reduced levels of reactive oxygen species (ROS) accumulation (•OH, O2·− and H2O2) in stressed plants. Additionally, NCs application influenced Cd accumulation in different tissues, potentially through modifying chemical profile of root exudates (amino/organic acids), which facilitated Cd precipitation through chelation and its sequestration in vacuoles via modulating the expression of metal transporters. Furthermore, the application of NCs indirectly regulated Cd fractionation, solubility, mobility and Cd enrichment in the rhizosphere. This study demonstrated the effective mitigation of Cd toxicity in rice plants by applying silica-coated iron oxide NCs. The results provided valuable insights into nanotechnology-based approaches for improving plant stress tolerance and offer promising strategies for sustainable agricultural practices.