A new and sustainable process was reported for the in situ synthesis of Nb‐Pb co‐doped and Pd‐loaded TiO2/BaTiO3 nanometer heterostructures from waste multilayer ceramic capacitors through a simple chlorination–leaching route. The particle size of the Nb‐Pb co‐doped heterostructure and the Pd loading were 20–50 nm and less than 5 nm, respectively. The bandgaps of the prepared samples were in the range 2.81–2.92 eV. The optimal simulated‐sunlight photocatalytic H2 production rate and Rhodamine B degradation rate of the prepared heterostructure could reach 576.8 μmol g−1 h−1 and 0.29911 min−1, respectively, which were approximately 11.3 and 19.1 times higher than those of commercial TiO2, and 5.96 and 8.91 times higher than those of bare TiO2/BaTiO3. The recycled heterostructure exhibited excellent photostability and reusability. Such superior photocatalytic performance of the sample was attributed to the formation of the heterostructure, the Nb‐Pb co‐doping, and the Pd loading, which enhanced the visible light absorption and charge separation efficiency. Furthermore, DFT calculations were applied to explore the enhanced mechanism. This study demonstrates a sustainable process for the conversion of e‐waste to a high‐value‐added and highefficiency photocatalyst, which has the advantages of waste utilization, low‐cost preparation, and environmental protection.