In this study, a straightforward, eco-friendly, and facile method for synthesizing iron oxide nanoparticles (IONPs) utilizing Piper chaba steam extract as a reducing and stabilizing agent has been demonstrated. The formation of stable IONPs coated with organic moieties was confirmed from UV−vis, FTIR, and EDX spectroscopy and DLS analysis. The produced IONPs are sufficiently crystalline to be superparamagnetic having a saturation magnetization value of 58 emu/g, and their spherical form and size of 9 nm were verified by XRD, VSM, SEM, and TEM investigations. In addition, the synthesized IONPs exhibited notable effectiveness in the removal of Congo Red (CR) dye with a maximum adsorption capacity of 88 mg/g. The adsorption kinetics followed pseudo-second-order kinetics, meaning the adsorption of CR on IONPs is mostly controlled by chemisorption. The adsorption isotherms of CR on the surface of IONPs follow the Langmuir isotherm model, indicating the monolayer adsorption on the homogeneous surface of IONPs through adsorbate−adsorbent interaction. The IONPs have revealed good potential for their reusability, with the adsorption efficiency remaining at about 85% after five adsorption−desorption cycles. The large-scale, safe, and cost-effective manufacturing of IONPs is made possible by this environmentally friendly process.