The present study evaluates the effect of integrated nano-bio approach involving nanoscale magnesium oxide (n-MgO) and yeast Candida sp. SMN04 on cefdinir degradation in aqueous medium. The nanoparticle was chemically synthesized and characterized by atomic force microscopy (AFM), scanning electron microscopy (SEM), EDAX analysis and particle size analyser. Nano-bio integrated system was prepared using chemically synthesized n-MgO (10 mg mL−1), coated onto the surface of yeast cells without causing any lethal effects to the cell. Cefdinir (250 mg L−1) degradation was studied using individual and nano-bio integrated system both. Nano-bio integrated system was found to be more effective for cefdinir degradation compared to native yeast cell. The adherence of nanoparticles on the surface of the yeast cells increased the permeability of the cell membrane, thereby enhancing the entry of cefdinir into the cell. The kinetic data showed the half-life of cefdinir, which was 1.46 days for integrated system and 2.97 days for native yeast, which confirmed that the integrated approach reduced the half-life to less than half of the time taken by the yeast alone. This study signifies the potential efficacy of the nano-bio integrated approach to serve as an effective remedial tool for the treatment of pharmaceutical wastewater. {\textcopyright} 2015 American Institute of Chemical Engineers Environ Prog, 35: 706–714, 2016.