The invention discloses a Fe (III) cluster/bismuth oxyiodide composite photocatalytic material and a preparation method and application thereof. The photocatalytic material comprises defective bismuthoxyiodide and Fe (III) clusters loaded thereon. The preparation method comprises the following steps: preparing a bismuth oxyiodide monomer; preparing defective bismuth oxyiodide through calcination;and preparing the photocatalytic material through water bath reaction. The photocatalytic material has the advantages of wide photoresponse range, low photo-generated electron and hole recombinationefficiency, high catalytic performance, good stability, good reusability, simplicity in recycling, high recycling rate and the like, can be widely used for treating pollutants in the environment, andhas high use value and good application prospect. The preparation method has the advantages of being simple in process, convenient to operate, low in raw material cost, less in energy consumption, short in time consumption, mild in reaction condition, easy to control, environment-friendly and the like, and the prepared material is high in crystallization degree, unchanged in property and good in application prospect.