In the pursuit of sustainable materials for environmental remediation, this study presents the development and comprehensive characterization of cobalt ferrite nanoparticles (CFNPs) incorporated in lignocellulosic-derived sodium alginate (CFNPs@LCG-SA) biocomposite beads. These biobased beads exhibit exceptional adsorption capabilities, particularly for methylene blue (MB) dyes, rendering them promising candidates for wastewater treatment. Using a comprehensive range of analytical techniques, including Fourier transform infrared spectroscopy (FTIR), X-ray diffraction (XRD), thermogravimetric analysis−derivative thermogravimetry (TGA/DTG), scanning electron microscopy (SEM), energy-dispersive X-ray (EDX), etc., we elucidated their structural, physicochemical, and thermal properties. Their multifunctional nature, derived from lignin and sodium alginate components, provides ample active sites for both physical interactions and chemical bonding with contaminants apart from the magnetic character attributed by the CFNPs. With a freeze-drying approach, the optimal adsorption capacity and removal rate of MB reached 97 mg/g and 99%, respectively, and no meaningful decline in their activity was noted even after six cycles. The CFNPs@LCG-SA biocomposite beads emerge as a cost-efficient and sustainable remedy for environmental cleanup, offering valuable perspectives in environmental preservation and advancing green energy technologies.