Herein, heavy rare‐earth substituted bismuth ferrite thin films were prepared using a low‐temperature sol–gel‐assisted spin coating method. The substitution of heavy rare‐earth ions for Bi3+ leads to structural transformation from rhombohedral (R3c) for x = 0.05 to orthorhombic (Pnma) symmetry for x = 0.05, which was found to have a great effect on the surface morphology, optical band‐gap energy, and photocatalytic activity of a BiFeO3(BFO) thin film. Moreover, the optical properties of prepared films were investigated via UV–visible spectroscopy. For all samples, the bandgap energy values were between 1.18 and 1.65 eV. Moreover, the refractive index and extinction coefficient of samples were about 1.14–1.40 and 0.1–0.6, respectively. Photocatalytic properties of the samples were investigated by measuring the degradation of methylene blue dye under simulated solar irradiation. We found that the heavy rare‐earth substituted BFO thin films have better photocatalytic activity compared to pure BiFeO3 thin film. It was observed that prepared thin films could remove between 37.18% and 77.24% of dye after 180 min irradiation. This study confirms that prepared thin films are a suitable candidate for photocatalytic applications.