Arsenic toxicity has become a major concern worldwide. Remediation of this problem needs the development of technology with improved materials and systems with high efficiency. We have demonstrated a simple and efficient method for the absolute removal of As(III) from high concentration As(III) treated water with a low contact time period. The process of As(III) adsorption follows pseudo-second-order kinetic model. The mechanism for high-adsorption efficiency is attributed to fatty acid binding domain-mediated surface conjugation of ultrafine Fe2O3 nanoparticles with As(III). We have also ensured the simultaneous separation of arsenic sorbed nanoparticles by entrapping them in hydrophilic calcium alginate beads and thereby a pure arsenic free solution has been obtained.