Heavy metals are classified as persistent pollutants owing to their nature of bioaccumulation and affect human life and environment, even in minor concentrations. Divalent Cadmium (Cd) is one of the heavy metal pollutants that are highly toxic. The present study investigates the novel application of maghemite nanoparticles coated Bacillus subtilis for the removal of Cd ions from its aqueous solution by batch adsorption studies. Surface characterization of the biosorbent done by Scanning Electron Microscope (SEM) and the presence of maghemite nanoparticle coat was confirmed. Parameters like pH, initial metal ion concentration, contact time, and temperature that affect the biosorption of cadmium ions are analyzed, and the equilibrium adsorption capacity expressed as a function of each of the parameters. The mechanism of biosorption was studied by plotting adsorption isotherms, and it follows pseudo-second-order kinetics. Thermodynamic studies showed the process to be spontaneous and endothermic. At optimum conditions of pH 4, 30 °C, 120 rpm, maximum removal percentage of 83.5%, which accounts for an equilibrium adsorption capacity of 32.6 mg/g of biosorbent. There was a recovery of 76.4% of the biosorbent after adsorption studies. Based on the adsorptive capacity and good recovery of the biosorbent, maghemite coated Bacillus subtilis proves to be an efficient adsorbent for the removal of Cd ions from its aqueous solution.