Ceramsites are extensively employed as substrates for adsorbents in studies focused on phosphorus adsorption, leaving ceramsites crafted from diatomite less explored. Diatomite-based ceramsite, with its distinct porous architecture and surface silanol functionalities, is adept at supporting a variety of metal oxides, presenting a distinct advantage over other ceramsite variants. In light of this, the present study embarked on producing diatomite-based ceramsite using diatomite as the foundational material, subsequently enhancing it through the incorporation of Fe, thus yielding an Fe-modified diatomite-based ceramsite. Through adsorption testing, the modified ceramsite demonstrated a significantly improved adsorption capacity of 4.06 mg P/g, marking a substantial enhancement from the initial capacity of 0.9 mg P/g. The process of phosphorus adsorption exhibited a strong alignment with the Langmuir isotherm model and the pseudo-second-order kinetic model. In-depth analyses employing XRD, FTIR, zeta potential, and XPS techniques have revealed that the principal mechanisms driving the adsorption process are centered on interactions involving electrostatic forces, the formation of chemical precipitates, and the exchange of ligands. This investigation not only opens new avenues for the application of diatomite-based ceramsite but also lays down a theoretical foundation for its modification, thereby enriching the spectrum of its utility.