Currently, environmental pollution by various organic pollutants (e.g., organic dyes) is a serious, emerging global issue. The aqueous environment is highly exposed to the harmful effects of these organic compounds. Furthermore, the commonly applied conventional purification techniques are not sufficient enough. Heterogeneous photocatalysis and the photo-Fenton process are effective, low-cost and green alternatives for the removal of organic pollutants. In this study, different iron(III) oxide/titanium(IV) oxide/polyvinyl chloride (Fe2O3/TiO2/PVC) nanocomposites in tablet form were investigated in the photodegradation of methylene blue (MB) under simulated sunlight, and their possible antibacterial effects were examined. The newly synthesized nanocomposites were characterized by scanning electron microscope, X-ray diffraction, UV–Vis diffuse reflectance spectroscopy, and Raman spectroscopy. The results showed a hematite crystal form in the case of Fe2O3(2) and Fe2O3 samples, while the Fe2O3(1) sample showed a combination of hematite and synthetic mineral akaganeite. The highest photocatalytic efficiency was achieved in the presence of Fe2O3/TiO2/PVC, when 70.6% of MB was removed. In addition, the possible photo-cleaning and reuse of the mentioned photocatalyst was also examined. Based on the results, it can be seen that the activity did not decrease after five successive runs. Nanocomposites also exhibited mild antibacterial effects against the two tested Gram-positive bacteria (S. aureus and B. cereus).