Type I photodynamic therapy (PDT) generates reactive oxygen species (ROS) through oxygen‐independent photoreactions, making it a promising method for treating hypoxic tumors. However, the superoxide anion (O2∙–) generated usually exhibits a low oxidation capacity, restricting the antitumor efficacy of PDT in clinical practice. Herein, a photoactivated self‐assembled nanoreactor (1‐NBS@CeO2) is designed through integration of type I PDT and cerium oxide (CeO2) nanozymes for inducing cascade‐amplified oxidative stress in hypoxic tumors. The nanoreactor is constructed though co‐assembly of an amphiphilic peptide (1‐NBS) and CeO2, giving well‐dispersed spherical nanoparticles with enhanced superoxide dismutase (SOD)‐like and peroxidase (POD)‐like activities. Following light irradiation, 1‐NBS@CeO2 undergoes type I photoreactions to generated O2∙–, which is further catalyzed by the nanoreactors, ultimately forming hypertoxic hydroxyl radical (∙OH) through cascade‐amplified reactions. The PDT treatment using 1‐NBS@CeO2 results in elevation of intracellular ROS and depletion of GSH content in A375 cells, thereby inducing mitochondrial dysfunction and triggering apoptosis and ferroptosis of tumor cells. Importantly, intravenous administration of 1‐NBS@CeO2 alongside light irradiation showcases enhances antitumor efficacy and satisfactory biocompatibility in vivo. Together, the self‐assembled nanoreactor facilitates cascade‐amplified photoreactions for achieving efficacious type I PDT, which holds great promise in developing therapeutic modules towards hypoxic tumors.