Titanium dioxide (TiO2)-hematite composites are synthesized by the hydrothermal method and modified further by using air plasma for photocatalytic applications. High photocurrent response of the composite, 5.6 times better than TiO2, is observed, and high efficient degradation of methyl blue (MB) within 80 min is shown when TiO2 degraded MB in 180 min. It is found that the plasma treatment introduces electrochemical active surface area with formation of Ti3+ and oxygen vacancies and effectively reduces energy bandgap from 3.15 to 2.8 eV, electron-transfer resistance from 16 to 11 Omega, and particle size from 25 to 20 nm, compared to TiO2.