The use of synthetic coagulants to reduce suspended particles from drinkable water and wastewater is prompting new issues because it poses many health and environmental risks. Hence, improving the coagulation process using sophisticated nanotechnology with a magnetic field (MF) for quick recoverability emerges as being useful. In this study, the effects of magnetite rice starch (MS) and aluminum sulfate (alum) were investigated at a constant dose (3 g or 3000 mg/L) using a Jar test (six beakers) as potential low-cost coagulants for industrial wastewater treatment. At a high magnification of 1000× and a surface pore size of 298 µm, scanning electron microscopy and energy dispersive X-ray (SEM/EDX) analyses were utilized to elucidate the morphology of the coagulants. Coagulation was performed at 150 rpm (quick mixing) for 2 min, and 30 rpm (slow mixing) for 15 min. Thereafter, samples were allowed to settle (10–60 min) with and without MF. The findings showed more than 65% contaminants removal (turbidity and TSS) and 30% chemical oxygen demand (COD) removal using alum while MS showed 80% contaminants removal (turbidity and TSS) and 50% COD removal. MS showed an increase of more than 3% in contaminants removal (COD, turbidity, and TSS) when exposed to MF. As a result, the use of MS together with MF in water and wastewater treatment is anticipated as an environmentally benign and effective coagulant.