Abstract A novel Fe(III) modified Bi2O4 (Fe–Bi2O4) photocatalyst was prepared via the wet impregnation method, and measured through XRD, XPS, TEM, BET and DRS to analyze crystal structure, feature, textural and optical properties. Measurement results verified that Fe(III) formed nanoparticles loaded on the Bi2O4 nano-rod surface, which could contribute to accelerate photoinduced electrons efficient transfer and separation by interfacial charge transfer effect. When Fe–Bi2O4 photocatalyst was applied for decomposing rhodamine (RhB), the optimal photocatalyst (Fe–Bi2O4(45 wt%)) exhibited higher reaction rate constant in comparison to pure Bi2O4. Meanwhile, different radical scavengers tests revealed that h+ and ·O2− exhibited the major role in photocatalysis course. Finally, combined with above experimental results, a probable photocatalytic mechanism for Fe–Bi2O4 hybrid photocatalyst was presented.