CoFe2O4 nanoparticles were synthesized using environmentally friend sucrose auto-combustion method. PANI/CoFe2O4 nano-composites were prepared via in situ polymerization of aniline in the presence of various ferrite ratios. The structure, thermal, and electro-magnetic properties of the nano-composites were characterized by X-ray diffraction (XRD), Fourier transform infrared (FT-IR), transmission electron microscopy (TEM), thermo-gravimetric analysis (TG), vibrating sample magnetometer (VSM), ac-conductivity and dielectric measurements. The structural properties exhibited the existence of the two phases and indicated core–shell structure. This core–shell was confirmed further through thermal and electrical properties measurements. The different PANI properties such as thermal stability, magnetic and the dielectric were obviously improved by ferrite incorporation whereas its conductivity remained unaffected. The nano-composites (10 and 30%) were investigated for the efficient removal of acid red dye (AR) from wastewater. In this category, the effect of various parameters including pH, contact time, temperature and mass on the removal capacity were investigated. The adsorption kinetics indicated that the adsorption followed the pseudo-second-order equation model through spontaneous endothermic adsorption process. The incorporation of ferrite within PANI increases the magnetic sensitivity of the nano-composite, which will facilitate the ease of separation of dispersed nano-composite from aqueous solutions using simple magnet after dye removing process. Generally, the moderate magnetic sensitivity, cost effective synthesis besides the acceptable obtained adsorption capability of the entire nano-composites could enhance their future use in the remediation applications.