This work presents the fabrication, characterization, and application of iron-coated carbon fiber (Fe@CF), synthesized in a facile in situ iron reduction, for As(III) removal from an aqueous solution. The physico-chemical properties of the composite were characterized using Brunauer–Emmett–Teller (BET) surface area, scanning electron microscopy (SEM), X-ray diffraction (XRD), and Fourier-transform infrared (FTIR) spectroscopy. Adsorption studies were evaluated in batch experiments with respect to reaction time, the dose of adsorbent, As(III) initial concentration, pH, and co-existing ions. The results showed that the BET surface area and pore volume of Fe@CF slightly decreased after Fe coating, while its pore size remained, while the SEM and XRD analyses demonstrated that the Fe was successfully anchored on the CF. A maximum As(III) adsorption of 95% was achieved with an initial As concentration of 1.5 mg/L at optimum conditions (30 min of reaction time, 1 g/L of dose, 1 mg/L of As(III) concentration, and pH 3.5). Since the treated effluents could not meet the strict discharge standard of ≤10 μg/L set by the World Health Organization (WHO), a longer reaction time is required to complete the removal of remaining As(III) in the wastewater effluents. As compared to the other adsorbents reported previously, the Fe@CF composite has the highest As(III) removal. Overall, the findings suggested that the use of Fe@CF as an adsorbent is promising for effective remediation in the aquatic environment.