Industrial wastewater containing large amounts of organic pollutants is a severe threat to the environment and human health. Thus, the rapid detection and removal of these pollutants from wastewater are essential to protect public health and the ecological environment. In this study, a multifunctional and reusable surface-enhanced Raman scattering (SERS) substrate by growing Ag nanoparticles (NPs) on ZnO nanorods (NRs) was produced for detecting and degrading Rhodamine B (RhB) dye. The ZnO/Ag substrate exhibited excellent sensitivity, and the limit of detection (LOD) for RhB was as low as 10−11 M. Furthermore, the SERS substrate could efficiently degrade RhB, with a degradation efficiency of nearly 100% within 150 min. Moreover, it retained good SERS activity after multiple repeated uses. The interaction between Ag NPs, ZnO, and RhB was further investigated, and the mechanism of SERS and photocatalysis was proposed. The as-prepared ZnO/Ag composite structure could be highly applicable as a multifunctional SERS substrate for the rapid detection and photocatalytic degradation of trace amounts of organic pollutants in water.