Water pollution from dyes is a major environmental challenge, demanding advanced materials for efficient degradation. In this study, we synthesized iron oxide nanoparticles (IONPs) using an aqueous extract of Senegalia catechu leaves and evaluated their photocatalytic activity in methylene blue (MB) dye degradation under sunlight irradiation. The IONPs were characterized by UV-visible spectroscopy (UV–vis), Fourier Transform Infrared Spectroscopy (FT-IR), X-ray Diffraction (XRD), Scanning Electron Microscopy (SEM), and Energy Dispersive X-ray Spectroscopy (EDS). XRD pattern showed a highly crystalline structure with an average crystallite size of 34.7 nm, while SEM images revealed predominantly spherical particles with uneven surface texture. Photocatalytic efficiency exceeded 80% MB dye degradation after 120 min of sunlight exposure. Optimization of catalyst dose, pH, dye concentration, and other parameters is essential for maximizing degradation efficiency. The IONPs demonstrated reusability over four degradation cycles, retaining effective photocatalytic performance. This study underscores the potential of green-synthesized IONPs as eco-friendly photocatalysts for wastewater treatment and environmental remediation.