A novel nanomagnet modified with nickel ferrite nanoparticles (NPs) coated with hybrid chitosan (Cs-NiFeO) was synthesized using the co-precipitation method. The resulting nanomagnets were characterized using various techniques. The size of the nanomagnetic particles was estimated to be about 40 nm based on the transmission electron microscopy (TEM) image and X-ray diffraction analysis (XRD) pattern (using the Debye-Scherrer equation). Scanning electron microscopy (SEM) images indicated that the surface of Cs-NiFeO NPs is flatter and smoother than the uncoated NiFeO NPs. According to value stream mapping (VSM) analysis, the magnetization value of Cs-NiFeO NPs (17.34 emu/g) was significantly lower than NiFeO NPs (40.67 emu/g). The Cs-NiFeO NPs indicated higher antibacterial properties than NiFeO NPs and Cs. The minimum inhibitory concentrations of Cs-NiFeO NPs against S. aureus and E. coli were 128 and 256 mg/mL, respectively. Antioxidant activity (evaluated by 2,2-diphenyl-1-picrylhydrazyl (DPPH) scavenging test) for NiFeO NPs and Cs-NiFeO NPs at the concentration of 100 µg/mL were 35% and 42%, respectively. Consequently, the synthesized Cs-NiFeO NPs can be proposed as a viable material for biomedical applications.