In the present study, photocatalytic oxidation of dye bearing wastewater has been done using iron doped zinc oxide (Fe/ZnO) photocatalyst. Various photocatalysts were synthesized by solution combustion synthesis method, and their structural, morphological, and optical properties were studied using N-2 adsorption-desorption, Fourier transform infrared spectroscopy, X-ray diffractometer, thermogravimetric analysis, field emission scanning electron microscope, transition electron microscope, and UV-visible diffuse reflectance spectra. Effect of various parameters such as the amount of iron doped, calcination temperature, calcination time, pH of the dye solution, catalyst dose, hydrogen peroxide dose, reaction temperature, and initial concentration of the dye solution were optimized. At optimum conditions, more that 71% color removal, 94% dye degradation, and 41% total organic carbon removal was observed for acid red 1 dye solution having an initial concentration of 50 mg/L and initial color of 2730 Pt:Co units.