A series of novel AuxCd1−xS materials (x=0, 0.01, 0.02, 0.03, 0.05, 0.07, 0.1) were prepared and their optical properties, structural‐surface morphology, and photocatalytic activity for oxidation and reduction reactions under visible‐light irradiation were studied. X‐ray diffraction confirmed the shrinkage of the hexagonal crystal structure of CdS; the lattice parameters decreased as a=4.190→4.072 Å and b=c=6.790→6.635 Å with increased loading (1–10 mol %) of the Au3+ dopant. Optical spectra of AuxCd1−xS revealed a significant red‐shift (485→538 nm) of the absorption onset and band edge emission (506→530 nm) with notable quenching in photoluminescence. The bandgap energy decreases (2.71→2.41 eV) with increasing Au3+ doping of the CdS nanorods along with considerable shifting of valence band (+1.13→+1.04 eV) and conduction band positions (−1.58→−1.36 eV) versus NHE. The surface area of bare CdS (90.56 m2 g−1) is gradually reduced to 12.32 m2 g−1 with increasing Au3+ doping content. The photocatalytic activity considerably improves with doping, where the Au0.1Cd0.9S composite displays the highest levels of photooxidation (95 %) of 0.5 mM salicyldehyde and reduction of 5 mM m‐dinitrobenzene to m‐nitroaniline (44 %) and m‐phenylenediamine (52 %) relative to bare CdS (50 %) probably due to the homogeneous dispersion of Au3+ ions throughout CdS crystal, their superior band‐energetics for facile charge‐separation and better photostability.