Manganese-doped anatase with a nanosized morphology (as spherically shaped nanoparticles) has been synthesized under hydrothermal conditions. It has been shown that manganese is incorporated into the titanium dioxide structure to form substitutional solid solutions. At high dopant concentrations, part of the introduced manganese goes to the formation of α-MnO2. A significant increase in the optical activity in the visible range and a decrease in the bandgap width down to ~2.4 eV are observed for manganese-doped anatase because of the appearance of extrinsic (multivalent Mn ions) and intrinsic compensating (oxygen vacancies) defects. It has been found that manganese-doped samples are diluted magnetic semiconductors, and the magnetic characteristics increase with increasing manganese content. All manganese-containing samples demonstrate photocatalytic activity in the degradation reaction of indigo carmine when irradiated with visible light. The degree of dye degradation depends on the content of manganese in the samples and reaches 90%.