The non-biodegradable Congo red (CR) dye which is widely used in textile industries has poses carcinogenic risks due to its complex reactions that may generate benzidine. Effective treatment of industrial effluent containing CR dye is imperative. This study assessed chitosan (Cs) and chitosan/fly ash (Cs/Fa) composites for biosorbing CR dye from synthetic textile wastewater. Fly ash varied in the range of (1:0.25–1:1) with chitosan to assess adsorption performance. Characterization techniques included FTIR, SEM, EDX, BET, and zeta potential analyses. Response surface methodology guided the determination of optimal variables. The study examined Cs and Cs/Fa dosage (A), time (B), and initial dye concentration (C) effects on CR removal. Incorporating fly ash substantially cut adsorption costs by 50% while enhancing dye removal up to 85% at pH 6. Improved acidic stability of chitosan (Cs/Fa 1:0.75) was notable. Chitosan (Cs) exhibited a high Congo red removal efficiency of 98% while the chitosan/fly ash (Cs/Fa) composites showed a substantial removal efficiency of 94%. Optimal conditions were 2 g L−1 of adsorbents, initial CR concentration of 40 mg L−1 for 120 min. Freundlich isotherm model best described adsorption behavior. Pseudo-second-order kinetics correlated significantly (R2 = 0.999). This study showed the potential of Cs and Cs/Fa bio-composites for effective textile wastewater treatment.