Waste management and energy generation are the foremost concerns due to their direct relationship with biological species and the environment. Herein, we report the utilization of iron rust (inorganic pollutant) as a photocatalyst for the photodegradation of methylene blue (MB) dye (organic pollutant) under visible light (economic) and water oxidation (energy generation). Iron rust was collected from metallic pipes and calcined in the furnace at 700 °C for 3 h to remove the moisture/volatile content. The uncalcined and calcined rust NPs are characterized through scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS), Fourier-transform infrared (FTIR) analysis, X-ray Diffraction (XRD), and thermogravimetric analysis (TGA). The morphological study illustrated that the shape of uncalcined and calcined iron rust is spongy, porous, and agglomerated. The XRD and DLS particle sizes are in a few hundred nanometers range. The photodegradation (PD) investigation shows that calcined rust NPs are potent for the PD of modeled MB, and the degradation efficiency was about 94% in a very short time of 11 min. The photoelectrochemical (PEC) measurements revealed that calcined rust NPs are more active than uncalcined rust under simulated 1 SUN illumination with the respective photocurrent densities of ~0.40 and ~0.32 mA/cm2. The density functional theory simulations show the chemisorption of dye molecules over the catalyst surface, which evinces the high catalytic activity of the catalyst. These results demonstrate that cheaper and abundantly available rust can be useful for environmental and energy applications.