Using electrospun nanofibers doped with TiO2 and rare-earth ion Ho3+ as the matrix, and sodium gluconate as the reducing agent, Bi(NO3)3 was reduced using hydrothermal technology to produce Bi@Ho3+:TiO2 composite fiber materials. The materials’ phase, morphology, and photoelectric properties were characterized using various analytical testing methods, including X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), X-ray photoelectron spectroscopy (XPS), ultraviolet-visible diffuse reflectance spectroscopy (UV-Vis DRS), and transient photocurrent (IP). During the hydrothermal process, it was confirmed that Bi3+ was reduced by sodium gluconate to form pure Bi nanoparticles, which combined with Ho3+:TiO2 nanofibers to form heterojunctions. By leveraging the surface plasmon resonance (SPR) effect of metallic Bi and the abundant energy level structure and 4f electron transition properties of rare-earth Ho3+, the TiO2 nanofibers underwent dual modification, effectively enhancing the photocatalytic activity and stability of TiO2. Under visible light irradiation, the rate of hydrogen production through water decomposition reached 43.6 μmol·g−1·h−1.