Flame retardant and antibacterial sodium alginate (SA) fiber were fabricated using the bio-based flame retardant of phytic acid and DL-arginine successively, and then the morphological structures, combustion behavior, thermal stability, and mechanical as well as antibacterial properties of SA fiber were investigated carefully. It is found that when the additional amount of PADL (reaction products of phytic acid and DL-arginine) in SA composite fiber is 20 wt%, its limiting oxygen index (LOI) is 40.0 ± 0.3%, and UL−94 is V−0 grade. The combustion behavior of composite fiber shows that PADL can effectively reduce combustion heat and promote carbon formation. Its peak of HRR (pkHRR) is 5.9% of pure SA fiber, and the residual carbon increases from 23.0 ± 0.1% to 44.2 ± 0.2%. At the same time, the density of the residual carbon increases gradually. PADL can promote SA to form expanded carbon with increasing density, and isolate the heat and volatilization of combustible gases. The guanidine group of DL-arginine can interact with the cell membrane to kill bacteria, and the antibacterial property of SA composite fiber is increased by 30%. This study provides a very ecological, safe, environmentally friendly and simple method to prepare flame retardant and antibacterial SA composite fiber with bio-based materials.