In this study the optimum conditions for preparing the iron-doped TiO2 nanoparticles were investigated. Samples were synthesized by sol-gel impregnation method. Three effective parameters were optimized using Taguchi method, consisted of: (i) atomic ratios of Fe to Ti; (ii) sintering temperature; (iii) sintering time. The characterization of samples was determined using X-ray diffraction, BET- specific surface area, UV- Vis reflectance spectra (DRS) and scanning electron microscope (SEM). The XRD patterns of the samples indicated the existence of anatase crystal phase in structure. UV- Vis reflectance spectra showed an enhancement in light absorbance in the visible region (wavelength > 400 nm) for iron-doped samples. The photocatalytic activity of samples was investigated by the degradation of RO 16 (RO 16) dye under UV irradiation. The results illustrated that the photocatalytic activity of iron-doped TiO2 was more than pure TiO2, because of the smaller crystal size, grater BET surface area and higher light absorption ability.