Treatment of textile dyeing wastewater using existing physio‐chemical and biological methods is challenging and needs an efficient technique to manage toxic and recalcitrant textile dyes in the environment. As the nano iron particles are highly reactive, nontoxic, and cost‐effective, this study demonstrates the potential of nano iron particles in the decolorization of mono azo methyl orange dye and application to decolorize textile dyeing wastewater. The dye was decolorized 98% within 30 min of reaction time and 54% reduction in total organic carbon was observed. The detected intermediates products such as m/z 149, 128, 84, 73, 56, 55 confirm the efficiency of nano iron particles in degrading textile dyes into lower molecular compounds. The dye decolorization pathway and reaction mechanism are proposed. The treatment of real textile dyeing industry wastewater showed 82% dye color removal and reasonable reduction in the quantity of inorganic pollutants such as chlorides, sulfates. Hence,nano iron particles are highly recommended to remediate textile dyeing wastewater effectively. © 2018 American Institute of Chemical Engineers Environ Prog, 38: S366–S376, 2019