Iron oxide‐based nanostructures receive significant attention as efficient adsorbents for organic dye removal applications. Herein, iron oxide/carbon composite with well‐defined heterophase grain boundaries is synthesized by a simple precipitation method and followed by calcination. The local structure, spin dynamics, and magnetic properties of heterophase iron oxides/carbon composite are thoroughly investigated to explore its cationic and anionic dye removal capability. To validate the effectivity of the presence of heterogeneous grain boundaries, iron oxide/carbon nanocomposite with homogeneous grain boundaries is also examined. For an initial dye concentration of 50 mg L−1, pH 7, and adsorbent dose of 0.2 g L−1, the hetero‐IOCC exhibits a removal capacity of 71.63 and 140.19 mg g−1 for the cationic crystal violet and the anionic Congo red dyes, respectively. These values are significantly greater than those exhibited by as‐synthesized imidazole‐capped superparamagnetic α‐Fe2O3, 48.15 and 53.19 mg g−1; and homophase iron oxide/carbon nanocomposite, 12.51 and 17.95 mg g−1, respectively. Adsorption isotherms and kinetic studies indicate that the Langmuir isotherm model is found to be an appropriate model following the Elovich kinetic model. A detailed dye adsorption investigation on the pH effect, thermodynamic parameters, coexisting ionic effect, and reusability is also carried out.