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The contamination of aqueous environment by phenol poses a major threat due to its hyper toxic effects and removal of phenol is challenging due to its hydrophilic properties. This research study examines the surface encapsulation of iron oxide (IO) with bio-derived carbon-based date palm (DP) to make date palm-iron oxide (DP-IO) nanocomposite to potentially remediate phenol in aqueous environment. Phenol removal percentage is predominantly influenced by environmental factors, namely pH, nano sorbent loading, temperature, agitation speed, and initial phenol concentration. Under optimum conditions of 30 °C and pH 7.8, 80.30% of phenol was removed using a 0.75 g/L sorbent load with 100 mg/L initial phenol concentration. Langmuir isotherm fitted well (R2 > 0.997), supporting single-layer phenol attachment with maximum bio-sorption capacity of 72.46 mg/g. A pseudo-2nd-order (PSO) kinetic model is identified to be the most appropriate for the DP-IO sorption experiment (R2 >0.999). Scanning electron microscopic images, X-ray diffraction observations, FT-IR plots, and thermogravimetric analysis have been used to characterize. The removal mechanism involves unimolecular layer and chemisorption is identified as a rate determining step. The reuse potential proved that the synthesized nanocomposite as a sustainable solution for phenolic wastewater treatment. • Novel iron-oxide based nanocomposite was synthesized. • Optimal conditions for maximum phenol removal are identified. • Isotherm modeling was carried out. • Kinetic mechanism was studied. [ABSTRACT FROM AUTHOR]