During sediment remediation, adsorbent addition is an effective technology for the removal of contaminants but the cost is often high. In this study, a low-cost adsorbent, ceramsite, made from contaminated riverbed sediment was synthesized. The Fe-modified ceramsite (FMC) was used as adsorbent to remove arsenate from aqueous solutions and reduce the inorganic arsenic release from contaminated sediments. Kinetic studies showed that chemisorption mainly governed the adsorption process while batch studies yielded the theoretical adsorption capacity for arsenate of 10.63 mg/g at pH = 7 condition. Co-existing anions and pH have no significant impact on the adsorption process. In the regeneration studies, 91, 86, and 80% of the adsorption capacity were recovered in 3 cycles. In-situ remediation trials revealed that the addition of the adsorbent to sediment surface significantly reduced the release of inorganic arsenic into aqueous system, with a reduction efficiency of 86%. Furthermore, the species of the arsenic in the surface layer was significantly inactivated from an active state to a stable state. These findings highlight the application of the FMC as a facile and cost-effective adsorbent for containment of arsenic in solutions and sediments, demonstrating that they are highly applicable for practical cases.