We introduce a model of a quantum walk on a graph in which a particle jumps between neighboring nodes and interacts with independent spins sitting on the edges. Entanglement propagates with the walker. We apply this model to the case of a one-dimensional lattice to investigate its magnetic and entanglement properties. In the continuum limit, we recover a Landau-Lifshitz equation that describes the precession of spins. A rich dynamics is observed, with regimes of particle propagation and localization, together with spin oscillations and relaxation. Entanglement of the asymptotic states follows a volume law for most parameters (the coin rotation angle and the particle-spin coupling).