A practical approach for synthesizing functional material from waste material is described. The work was carried out by chemistry undergraduate students as a group project. The concepts used mainly in inorganic quantitative approaches were applied to transform an iron-containing material to magnetic iron oxide nanoparticles. The magnetic nanoparticles were applied for the removal of contaminants from water after making composite with activated carbon. Prior to this work, students had only theoretical knowledge about most of the concepts used. The experiment involving the synthesis of nanoparticles from waste material and its application to address a real life problem helped the students to experience green and sustainable approach in the laboratory.