In this study, Rhodamine B dye (RhB) is effectively removed from aqueous solutions by using nano‐MgO and nano‐MgO activated carbon as an adsorbent. First, potassium hydroxide was used in a chemical activation process to create activated carbon from the Anacardium occidentale shell, often known as the cashew nutshell. Rosa cymose extract was used in a quick precipitation process to create nano‐magnesium oxide in a sustainable way. Activated carbon composite impregnated with nano‐magnesium oxide was made using a dropwise process. The study examined the nanocomposite that removed the dye Rhodamine B from the aqueous solution. Using SEM, XRD, FTIR, and EDX, the nano‐Mgo and nano‐MgO‐AC were analyzed. Using a scanning electron microscope, an analysis was conducted on the evenly distributed accumulation of MgO nanoparticles added to the activated carbon. The capability of nano‐MgO‐activated carbon to decolorize RhB was investigated. The effects of beginning pH ranges of 2.0–9.0, initial dye concentrations of 10–40 ppm, biosorbent dosages of 0.2–1.2 g, and contact times ranging from 10 to 60 min were investigated. At pH 5, most dye was eliminated. The work has shown that RhB may be effectively removed from aqueous medium using nano‐MgO‐AC, it could potentially be used as an affordable adsorbent material. Equilibrium estimations were acknowledged strongly through Langmuir approximations with a correlation determination of 0.985.