A method and recyclable magnetic adsorbent are provided for removing contaminants from a fluid stream that has by-products. The method includes providing an adsorbent material that has incorporated at least one ferromagnetic material. Contacting the ferromagnetic adsorbent material to at least a portion of contaminated stream to adsorb the contaminant. The contaminated adsorbent is then separated from the by-products using a magnetic separation process. The adsorbent is recovered from the solid by-products and reusable in the present method.