As an important thermosetting material, flame-retardant epoxy resin has various applications in the aerospace, chemical, and electronics industry, and other fields. However, the flame retardancy of epoxy resins is often improved at the expense of mechanical performance. The contradiction between flame retardancy and mechanical properties seriously impedes the practical applications of epoxy resin (EP). Herein, iron-loaded polydopamine functionalized montmorillonite (D-Mt-Fe3+), which was prepared by dopamine, iron chloride and montmorillonite in an aqueous solution, was introduced to prepare iron-loaded polydopamine functionalized montmorillonite/epoxy resin composites (D-Mt-Fe3+/EP). As expected, D-Mt-Fe3+/EP-10 with 10 phr of D-Mt-Fe3+ passed the UL-94 V-0 rating, achieved a limiting oxygen index (LOI) value of 31.0% and reduced the smoke production rate (SPR) and total smoke production (TSP), indicating that the introduction of D-Mt-Fe3+ could endow EP with satisfactory flame retardancy through the radical scavenging function of dopamine in the gas phase and the catalytic charring effect of iron ions, respectively. Encouragingly, the mechanical property was also enhanced with the flexural strength increased by 25.5%. This work provided an attractive strategy for improving both the mechanical properties and fire resistance of EP, which greatly broadened their applications in the chemical industry and electronics field, etc.