Volatile organic compounds (VOCs) are typical pollutants with hazards for humans and the environment, and can be efficiently mitigated by catalytic combustion. Fe2O3‐based catalysts are a promising choice due to their low cost and strong redox ability. Several attempts have been made to promote the catalytic performance of Fe2O3 at low temperatures. This review summarizes the research progress on Fe2O3‐based catalysts for the oxidation of toluene, one of the most common and harmful VOC. Firstly, the properties and catalytical performance for Fe2O3‐based catalysts were summarized, and the reaction mechanisms for toluene oxidation on the surface of Fe2O3 were detailed to comprehend the role of oxygen vacancy. Then, the modification for single Fe2O3 catalysts, including synthesis parameters, structure and morphology control, has been introduced to reveal the correlation between physicochemical properties of catalysts and their activity. In addition, composite Fe2O3 catalysts, which can promote catalytic performance significantly due to the synergetic effect between different components, were comprehended. Finally, waste‐derived Fe2O3 catalysts with sustainable merit as converting waste into worth have been discussed. Moreover, the advanced machine learning tools, which are helpful in accelerating catalyst design, configuration optimization and reactivity prediction, have been introduced as an emerging research opportunity for the future.