Development of biocompatible photocatalysts with improved charge separation and high selectivity is essential for effective removal of air pollutants. Iron-containing catalysts have attracted extensive attention due to their low-toxicity and high natural abundance. Here, carbon quantum dots (CQDs) modified FeOOH nanocomposites fabricated using a facile hydrothermal route showed enhanced NO removal efficiency (22%) compared to pure FeOOH. Moreover, generation of toxic NO2 intermediates was significantly inhibited using the nanocomposites, demonstrating high selectivity for final nitrate formation. Photo-electrochemical results showed that both charge separation and transfer efficiency were significantly improved by CQDs addition, and the lifetime of photo-generated carriers was increased eventually. Density functional theory calculations further elucidated that the suppressed recombination of photo-induced electron-hole pairs was due to enhanced electron migration from the FeOOH to CQDs. A NO degradation mechanism was proposed based on detection of the reactive oxygen species using electron paramagnetic spectroscopy. In addition, the nanocomposite showed good biocompatibility and low cytotoxity, ensuring minimal environmental impact for potential application in large-scale.