This study examines paramagnetic liquids for optical beam steering in optical wireless communication (OWC) systems. By employing magnetic actuation, effective optical beam control was achieved for both free-space optics (FSO) and underwater wireless optical communication (UWOC). Experimental findings revealed that dysprosium nitrate provided the highest beam steering angles of 5.99° in the ±X direction and 5.73° in the ±Y direction. Additionally, power loss analysis indicated minimal absorption and scattering for dysprosium nitrate and gadolinium nitrate. The system achieved high-speed data rates of 2.1 Gbps for FSO and 1.9 Gbps for UWOC systems, showcasing the promise of this technology.