A sewage sludge-based activated carbon (SBAC) intercalated MgAlFe ternary layered double hydroxide (SBAC-MgAlFe-LDH) composite was synthesized via the coprecipitation method. The adsorptive performance of the composite for phenol uptake from the aqueous phase was evaluated via the response surface methodology (RSM) modeling technique. The SBAC-MgAlFe-LDH phenol uptake capacity data were well-fitted to reduced RSM cubic model (R2 = 0.995, R2-adjusted = 0.993, R2-predicted = 0.959 and p-values < 0.05). The optimum phenol adsorption onto the SBAC-MgAlFe-LDH was achieved at 35 °C, 125 mg/L phenol, and pH 6. Under the optimal phenol uptake conditions, pseudo-first-order and Avrami fractional-order models provided a better representation of the phenol uptake kinetic data, while the equilibrium data models’ fitting follows the order; Liu > Langmuir > Redlich–Peterson > Freundlich > Temkin. The phenol uptake mechanism was endothermic in nature and predominantly via a physisorption process (ΔG° = −5.33 to −5.77 kJ/mol) with the involvement of π–π interactions between the phenol molecules and the functionalities on the SBAC-LDH surface. The maximum uptake capacity (216.76 mg/g) of SBAC-MgAlFe-LDH was much higher than many other SBAC-based adsorbents. The improved uptake capacity of SBAC-LDH was attributed to the effective synergetic influence of SBAC-MgAlFe-LDH, which yielded abundant functionalized surface groups that favored higher aqueous phase uptake of phenol molecules. This study showcases the potential of SBAC-MgAlFe-LDH as an effective adsorbent material for remediation of phenolic wastewater