In the present investigation, silver decorated and bismuth doped -Fe2O3 (Ag/Bi-Fe2O3) was successfully synthesized using the co-precipitation method. The size, shape, surface area, and magnetic properties were characterized by XRD, FE-SEM, EDX, BET, VSM, and UV-Vis-DRS techniques. The synthesized nanoparticles were used as a photocatalyst for the degradation of rose bengal (RB) dye under simulated solar light irradiation. Ag/Bi-Fe2O3 showed the better photocatalytic activity of 97.11% within 135min when compared to Bi-Fe2O3 and Ag-Fe2O3. The superior photo-catalytic activity of Ag/Bi-Fe2O3 was mainly ascribed to visible light absorption and the suppression of photo-generated electron-hole recombination. Ag/Bi-Fe2O3 was found to be a stable photocatalyst during recycling experiments. Besides, the magnetic property of Ag/Bi-Fe2O3 makes it an ideal candidate for separation and recovery during recycling.