A novel approach to enhance the utilization of low-cost and sustainable chitosan for wastewater remediation is presented in this investigation. The study centers around the modification of chitosan beads using a deep eutectic solvent composed of choline chloride and urea at a molar ratio of 1:2, followed by treatment with sulfuric acid using an impregnation accessible methodology. The effectiveness of the modified chitosan beads as an adsorbent was evaluated by studying the removal of the azo dye Reactive Black 5 (RB5) from aqueous solutions. Remarkably, the modified chitosan beads demonstrated a substantial increase in adsorption efficiency, achieving excellent removal of RB5 within the concentration range of 25–250 mg/L, ultimately leading to complete elimination. Several key parameters influencing the adsorption process were investigated, including initial RB5 concentration, adsorbent dosage, contact time, temperature, and pH. Quantitative analysis revealed that the pseudo-second-order kinetic model provided the best fit for the experimental data at lower dye concentrations, while the intraparticle diffusion model showed superior performance at higher RB5 concentration ranges (150–250 mg/L). The experimental data were successfully explained by the Langmuir isotherm model, and the maximum adsorption capacities were found to be 116.78 mg/g at 298 K and 379.90 mg/g at 318 K. Desorption studies demonstrated that approximately 41.7% of the dye could be successfully desorbed in a single cycle. Moreover, the regenerated adsorbent exhibited highly efficient RB5 removal (80.0–87.6%) for at least five consecutive uses. The outstanding adsorption properties of the modified chitosan beads can be attributed to the increased porosity, surface area, and swelling behavior resulting from the acidic treatment in combination with the DES modification. These findings establish the modified chitosan beads as a stable, versatile, and reusable eco-friendly adsorbent with high potential for industrial implementation.