Hydroxyapatite (HAP) is the naturally occurring mineral form of calcium apatite and the most studied material as a bone substituent. Considering HAP's inherent properties, this study explored changes in HAP's characteristics from doping with other metals such as Fe. To form pure HAP and Fe-HAP with different amounts of Fe, we used the hydrothermal approach, and the composites that formed were thoroughly analyzed for their crystallinity, surface bonding, morphology, magnetic behavior, mechanical strength, biocompatibility, hemocompatibility, and in vitro cytotoxicity. The powder XRD studies confirmed the samples' crystallinity, and the lowest crystalline size was 19.7 nm in 10Fe-HAP. The FTIR analysis confirmed the formation of HAP by the hydroxyl, phosphate, and carbonate groups. The FESEM demonstrated that the morphology of the pure HAP was rod-shaped, which transformed into spheres after Fe doping. The EDS analysis confirmed the successful formation of HAP and Fe-HAP composites. The magnetic studies indicated the diamagnetic behavior of the pure HAP, while the Fe-doped HAPs had a superparamagnetic nature with saturation magnetizations (Ms) of 2Fe-HAP, 4Fe-HAP, and 10Fe-HAP at 0.0062, 0.0092, and 0.029 emu/g respectively. Assessment of the mechanical properties, biocompatibility, hemocompatibility, and cytotoxicity indicated that the Fe-doped HAPs were superior to the pure HAP, and among the Fe-HAPs, the 10Fe-HAP) had the highest amount of Fe and the best characteristics. The studies also indicated that Ca2+ interactions influenced the cells via HAP doping with that of Fe, equally increasing the physicochemical and biological properties.