Nanostructured iron (III) compounds are promising candidates for iron fortification applications due to their good solubility, bioavailability, and redox inertia. The current study synthesized ferric oxyhydroxide nanoparticles (FeONPs) based on chondroitin sulfate (ChS) and its nanocomposites with protamine sulfate (PS) or chitosan (CS) in neutral aqueous solution under ambient conditions, and evaluated their iron availability to polarized human intestinal epithelial (Caco-2) cells. Ultraviolet-visible spectroscopy, dynamic light scattering, transmission electron microscopy and energy-dispersive X-ray spectroscopy showed that ChS-FeONPs were wave-like anionic particles where FeONPs attached on the polysaccharide chains and PS/ChS-FeONPs and CS/ChS-FeONPs were irregular anionic nanoparticles where FeONPs scattered across the entire region. The calcein-fluorescence-quenching assay in polarized Caco-2 cells showed good iron uptake from ChS-FeONPs, PS/ChS-FeONPs and CS/ChS-FeONPs mainly via endocytosis, with the latter two exhibiting better iron absorption. Overall, our study provides a more facile and greener alternative route to synthesize the bioavailable nano-sized iron.