Phosphorus (P) fertilizers applied to container-grown nursery crops readily leach through pine bark-based substrates and can subsequently runoff and contribute to surface water contamination. The objectives of this research were to determine the effect of adding a layer of FeSO4·7H2O-amended pine bark (FSB) to the bottoms of nursery containers on P leaching characteristics. Phosphorus and iron (Fe) leaching in response to FSB layer height (4 or 7.5 cm), FeSO4·7H2O rate (0.3, 0.6, or 1.2 kg·m−3 Fe), and form (i.e., granular versus liquid) used to formulate the FSB layer, and the inclusion of dolomite in the FSB layer were also investigated. Greenhouse studies lasting 15 and 19 weeks were conducted, in which 2.5 L nursery containers containing the FSB layer treatments below non-amended pine bark substrate were fertilized with 199 or 117 mg P from a soluble or controlled-release fertilizer, respectively. Leachate resulting from daily irrigation was collected and analyzed for P and Fe weekly. All FSB treatments leached less P than the control (non-amended pine bark only), with P reductions ranging from 22% (4 cm FSB with 0.3 kg·m−3 Fe) to 73% (7.5 cm FSB with 1.2 kg·m−3 Fe). Phosphorus leaching decreased linearly with an increase in Fe rate or layer height. The amount of Fe that leached from containers with FSB was <5% of that applied, regardless of the Fe rate. Granular- and liquid-applied FeSO4·7H2O with or without dolomite were equally effective at reducing P leaching. Adding 0.6 kg·m−3 Fe to the bottom 500 cm3 of pine bark increased P adsorption by 0.053 mg·cm−3 P, which equates to 17.9 mg P adsorbed per gram of FeSO4·7H2O added. Results from this research suggest that including an FSB layer in the bottom of nursery containers is an effective strategy for reducing P runoff from container-based nursery production sites.