Chitosan (CS)/iron oxide (Fe3O4) composites were prepared using a chemical precipitation method. The CS/Fe3O4 composite was characterized by Fourier-transform infrared spectroscopy, X-ray diffraction, transmission electron microscopy, and zeta-potential measurements. The composite was used to remove methyl orange (MO) dye from an aqueous solution. The factors affecting the adsorption capacity, such as adsorption time, absorbent dosage and solution pH were investigated. The results suggested that the composite was an effective adsorbent for the removal of MO dye from its aqueous solution. Kinetics studies showed that the adsorption process was consistent with a pseudo-second-order model. The adsorbent efficiency was unaltered, even after five cycles of reuse, and the adsorbent could be recollected easily using a magnet. In addition, the composite exhibited a superior antibacterial efficacy against Escherichia coli; 82% within 24 h, as measured by the colony forming units.