Waste recycling and reuse will result in significant material and energy savings. In this research, usage of hospital sludge as a biochar adsorbent for wastewater treatment plants was investigated. Microwave carbonization was used to carbonize the sludge and then chemically activated with ZnCl₂to increase surface area and porosity. A newly designed iron metal doped sludge biochar carbon (SBC) has effective adsorption of inorganic arsenic (As(III), As₂O₃) in water. The findings clearly demonstrate the viability and utility of using hospital sludge as a source of carbon to generate SBC. The adsorption mechanism of As(III) on SBC's iron-metal-modified surface has been studied using density functional theory (DFT) to understand the impact of functional complexes on adsorption As(III). Tests showed physical as well as chemical adsorption of As(III) on Fe-SBC surface. Fe's involvement in functional complexes greatly fostered SBC surface activity and it's As(III) adsorption ability. The physical adsorption energies of As(III) with Fe functional complexes on the SBC surface were -42.3 KJ mol-1. Other hand, the chemical adsorption energies of As(III) on Fe-SBC surface was -325.5 KJ mol-1. As(III) is capable of interacting in a bidentate fashion with the dopants through the protonated oxygen atoms and this conformation of the cyclic structure is higher in the adsorption energy than the others.