The present study demonstrates the synthesis of phase pure hematite (α-Fe2O3) nanoparticles (NPs) using collagen protein and calcium carbonate extracted from eggshell membranes and eggshells, respectively, as organic additives. To test the influence of organic additives on the quality of the resulting NPs, the amount of eggshell powder was varied between 1 to 5 g in aqueous iron nitrate solution. X-ray diffraction (XRD), Fourier transform infrared spectroscopy (FTIR), and RAMAN analysis confirmed the formation of hematite NPs without any impurities. FTIR spectra revealed the presence of polyphenolic constituents on the surface of the resulting NPs as stabilizers, which may potentially be responsible for the observed antioxidant and antibacterial properties. Furthermore, the stable phase and the presence of low defects divulged the high hardness value (~983 HV) and fracture toughness (8.59 MPa m1/2), which can be exploited for bone implantation. The FE-SEM results demonstrate the formation of spherical particles, which are well-separated NPs. The results of a biodegradation study which was carried out in phosphate-buffered saline (PBS) revealed that the as-prepared NPs retained their hardness even after 72 h of soaking. These prepared NPs showed 95% radical scavenging activity (RSA) and were good carriers against S. aureus bacteria. Moreover, the SEM images of the mineralization of iron oxide NPs confirmed the formation of new bone. After 5 weeks, all pores were filled, and the minerals were deposited on the surfaces of the scaffolds.