Iron-doped titanium dioxide nanoparticles are widely employed for photocatalytic applications under visible light due to their promising performance. Nevertheless, the manufacturing process, the role of Fe3+ ions within the crystal lattice of titanium dioxide, and their impact on operational parameters are still a subject of controversy. Based on these assumptions, the primary objective of this review is to delineate the role of iron, ascertain the optimal quantity, and elucidate its influence on the main photocatalysis parameters, including nanoparticle size, band gap, surface area, anatase–rutile transition, and point of zero charge. Moreover, an optimized synthesis method based on comprehensive data and insights from the existing literature is proposed, focusing exclusively on iron-doped titanium oxide while excluding other dopant variants.