Systems thinking is highly desirable for re-imagining chemistry education, which will help in the development of an integrated and sustainable approach that takes into account the interdependence of a system under study with other components of the ecosystem rather than practicing a fragmented approach. Thus, to develop a systems' perspective into the minds of early researchers, we propose a safe, convenient, and reliable two sessions laboratory experiment in which students synthesize magnetic nanoparticles (MNPs) using plant-derived potato extract as a green reaction medium and as both reducing and stabilizing agent. The synthesized MNPs are effectively utilized in the degradation of rhodamine B dye under ultrasonic radiation and using H[subscript 2]O[subscript 2] as an oxidant. Further, the recyclability of MNPs was tested in successive runs. The described experiment has also been performed by numerous undergraduate students and is well appreciated by them. The former synthetic experiment gives students an introduction and hands on experience to nanotechnology through nanoparticle synthesis. While the later describes practical applications of nanotechnology in wastewater treatment, thereby reinforcing basic chemical principles and instrumentation techniques (such as FT-IR and UV-vis spectrophotometry) through environmental remediation. To foster students' higher order thinking skills, a systems thinking hierarchical model has also been proposed. It is believed that this context-based learning approach opens a door for re-imagining chemistry education and will help educate students and society in a more effective manner.