We report the synthesis of an electrically conductive and magnetically active hybrid biocomposite comprising collagen and polyaniline (PAni) as the matrix and iron oxide nanoparticles (IONPs) as the filler through an in situ polymerization technique. Here, the matrix biopolymer, collagen, was extracted from trimmed wastes of animal hides generated from the leather industry. The as-synthesized C/PAni/IONP hybrid biocomposite powder possesses excellent electrical conductivity, thermal stability, and saturation magnetization, thereby providing scope for a wide range of applications. We show that the bifunctional composite has an ability to conduct electrons using a light emitting diode and battery setup, degrade dye under sunlight owing to its inherent photocatalytic activity, and absorb oil from oil-water mixtures with easier collection under magnetic tracking. We also demonstrate that the composite has remarkable electromagnetic interference shielding in the X-band frequency range. The results suggest that biowastes can be converted into useful high-value hybrid materials for applications in catalysis, biological, electronic, and environmental fields, thereby presenting a scalable and sustainable approach.