The toxicity of dyes has a long-lasting negative impact on aquatic life. Adsorption is an inexpensive, simple, and straightforward technique for eliminating pollutants. One of the challenges facing adsorption is that it is hard to collect the adsorbents after the adsorption. Adding a magnetic property to the adsorbents makes it easier to collect the adsorbents. The current work reports the synthesis of an iron oxide-hydrochar composite (FHC) and an iron oxide-activated hydrochar composite (FAC) through the microwave-assisted hydrothermal carbonization (MHC) technique, which is known as a timesaving and energy-efficient method. The synthesized composites were characterized using various techniques, such as FT-IR, XRD, SEM, TEM, and N2isotherm. The prepared composites were applied in the adsorption of cationic methylene blue dye (MB). The composites were formed of crystalline iron oxide and amorphous hydrochar, with a porous structure for the hydrochar and a rod-like structure for the iron oxide. The pH of the point of zero charge (pHpzc) of the iron oxide-hydrochar composite and the iron oxide-activated hydrochar composite were 5.3 and 5.6, respectively. Approximately 556 mg and 50 mg of MB dye was adsorbed on the surface of 1 g of the FHC and FAC, respectively, according to the maximum adsorption capacity calculated using the Langmuir model.