Ensuring the availability of water resources that are both clean and safe is crucial for the preservation of environmental health and the well‐being of humans. Here, we fabricated carboxymethyl cellulose‐based hydrogel nanocomposite using acrylic acid (AA) and 2‐acrylamido‐2‐methylpropane sulfuric acid (AMPS) monomers and Fe3O4 nanoparticles through a free radical crosslinking process for adsorption of dyes from contaminated water. The synthesized nanocomposite hydrogel was characterized using various techniques, including TEM, XRD, FTIR, SEM‐EDS, TGA, and AFM analysis. The swelling capacity of samples in an aqueous medium at multiple pH levels and the presence of different salts were investigated. The adsorption efficiency of methylene blue (MB) and crystal violet (CV), emphasizing the effect of hydrogel concentration and the medium's pH, was studied. It was concluded that the hydrogel sample containing 17 % AMPS and 51 % AA had better swelling capacity and dye removal efficiency. The dye adsorption kinetics data were fitted to pseudo‐first and second‐order kinetic models and the Langmuir and Temkin isotherm models. The maximum adsorption capacity for MB and CV was 53.97 and 53.57 mg/g, respectively. It was revealed that the pseudo‐second‐order kinetic model could best describe adsorption (qe=79.2 mg/g for MB and qe=65.8 mg/g for CV). The intra‐particle diffusion model was found to be the rate‐limiting mechanism of dye adsorption. Thermodynamic studies proposed that the adsorption of MB and CV was spontaneous and endothermic. Additionally, magnetic nanocomposite hydrogel‘s reusability up to four successive cycles further determines its probability of adsorption of dyes from wastewater.