Nanoparticles are potential candidates for wastewater treatment especially for the removal of heavy metals due to their strong affinity. Many biopolymers are used as adsorbents and encapsulation of nanoparticle onto them can increase their efficiency. In this study, SPIONs, alginate, and SPIONs incorporated on alginate beads have been synthesized and characterized both microscopically and spectroscopically. These were then used for the removal of chromium metal and the percentage of removal was evaluated using a batch adsorption study. The percent removal of chromium using SPIONs, alginate and alginate–SPIONs beads were recorded to be 93%, 91% and 94%, respectively. The adsorption of chromium using SPIONs and alginate–SPIONs beads followed the Tempkin isotherm, whereas adsorption of chromium metal by alginate beads was found to be homogeneous in nature and followed the Langmuir isotherm with an R² value of 0.9784. An in-vivo study using Danio rerio as a model organism was done to examine the toxicity and the removal efficiency of the samples. It was observed that chromium water treated with alginate–SPIONs beads, which were removed after water treatment showed less damage to the fishes when compared to SPIONs and alginate beads treated with chromium water where the SPIONs and alginate beads were not removed after the treatment period.