Azo compounds are used in the textile and leather industry. A significant step during the azo dyes treatment of water is the degradation by breaking the N=N bonds. This break produces the decolorization of water. In this research work, 10% atomic of Fe or Co was added to produce ternary Mn-Al-rich, nanostructured, mechanically alloyed powders in order to improve the decolorization of Reactive Black 5 solutions and to check Fe and Co addition’s influence. The microstructure was followed by X-ray diffraction, the morphology and composition by electronic microscopy and energy-dispersive X-ray spectroscopy (EDS) microanalysis. The dye degradation was monitored with ultraviolet/visible absorption spectrophotometry. After degradation, the remaining organic compound was checked by high-performance liquid chromatography (HPLC) and the functional groups of the powdered alloys by infrared spectroscopy. Fe addition to Mn-Al displayed faster kinetics and a higher efficiency than the Co addition. The Mn-Al-Fe solution (0.25 g/100 mL) was fully decolorized in 5 min. On the other side, Mn-Al-Co powders were able to successfully decolorize the dyed solution in 10 min under the same conditions. Thus, nanocrystalline Fe-doped Mn-Al alloys are good candidates for use in the decolorization process, in comparison with Co-doped and other intermetallic particles.