Heterogeneous iron-based catalysts governing selectivity for the reduction of nitroarenes and aldehydes have received tremendous attention in the arena of catalysis, but relatively less success has been achieved. Herein, we report a green strategy for the facile synthesis of a lignin residue-derived carbon-supported magnetic iron (γ-Fe2O3/LRC-700) nanocatalyst. This active nanocatalyst exhibits excellent activity and selectivity for the hydrogenation of nitroarenes to anilines, including pharmaceuticals (e.g., flutamide and nimesulide). Challenging and reducible functionalities such as halogens (e.g., chloro, iodo, and fluoro) and ketone, ester, and amide groups were tolerated. Moreover, biomass-derived aldehyde (e.g., furfural) and other aromatic aldehydes were also effective for the hydrogenation process, often useful in biomedical sciences and other important areas. Before and after the reaction, the γ-Fe2O3/LRC-700 nanocatalyst was thoroughly characterized by X-ray diffraction (XRD), N2adsorption-desorption, X-ray photoelectron spectroscopy (XPS), high-resolution transmission electron microscopy (HR-TEM), Raman spectroscopy, and thermogravimetric analysis (TGA). Additionally, the γ-Fe2O3/LRC-700 nanocatalyst is stable and easily separated using an external magnet and recycled up to five cycles with no substantial drop in the activity. Eventually, sustainable and green credentials for the hydrogenation reactions of 4-nitrobenzamide to 4-aminobenzamide and benzaldehyde to benzyl alcohol were assessed with the help of the CHEM21 green metrics toolkit. © 2022 American Chemical Society. All rights reserved.