In the present study, a novel Fe-ZnO/citric acid-modified cellulose composite (x%Fe-ZnO-y%CAC) was synthesized using an environmentally friendly hydrothermal method. The obtained samples were characterized by X-ray diffraction (XRD), scanning electron microscopy (SEM), UV–vis diffuse reflectance spectroscopy (DRS), Fourier transform infrared spectroscopy (FTIR), nitrogen physisorption, and electrochemical and photocurrent density analyses. The influence of the additives from the series of x%Fe-ZnO-y%CAC photocatalysts with Fe content from 0 to 5% and CAC content from 0 to 80% on photocatalytic degradation of ibuprofen (IBU) under simulated solar light was investigated. The photocatalyst 0.5%Fe-ZnO-40%CAC showed high photocatalytic activity of 0.0632 min−1 first-order kinetic rate constant and 46% TOC reduction of IBU under simulated solar light irradiation. Additionally, H2O2-assisted photocatalytic process was investigated for facilitating the IBU degradation in the presence of 0.5%Fe-ZnO-40%CAC; the first-order kinetic rate constant was 2.7 times higher compared to the process without addition of H2O2. Moreover, the effect of radical scavengers was examined to explain the degradation mechanism of IBU by synthesized photocatalysts supported with H2O2. The demonstrated system provides a low-cost and green approach to improve the photocatalytic activity of x%Fe-ZnO-y%CAC photocatalysts.