Nanocomposite of magnetically separable, TiO₂–ZnFe₂O₄ with an intermediate layer of alumina has been synthesized by a multistep wet chemical process. UV–vis absorption spectra show a red shift of the absorption edges for the composite systems compared to single phase TiO₂. Magnetic measurements indicate that the ZnFe₂O₄ is ferromagnetic at room temperature with low coercivity when the applied field is low, typical of soft magnetic materials. After TiO₂ and alumina coatings, the samples show similar magnetic behaviour. Photocatalytic activity studies for methyl red and thymol blue degradation indicate an enhanced activity for the composites when the alumina interlayer is present between TiO₂ and ZnFe₂O₄. When Pd is used as a co-catalyst in TiO₂–ZnFe₂O₄, an enhanced activity is observed, which is comparable to that of TiO₂–Al₂O₃–ZnFe₂O₄. The present study leads to a new result that an insulating interlayer like alumina can enhance the photocatalytic activity of TiO₂ coated ferrites as much as that of a noble metal co-catalyst like Pd. The enhanced photocatalytic activity of TiO₂–Al₂O₃–ZnFe₂O₄is attributed to the decrease in the migration of photogenerated charge carriers to zinc ferrite layer and due to the increased adsorption of the reactants on the surface of TiO₂–Al₂O₃–ZnFe₂O₄.