This study examines the potential of iron nanoparticle-coated copper oxychloride in mitigating its toxic effects on earthworms, a key component of sustainable agriculture due to their role in enhancing soil quality and promoting plant growth. While earthworms and their coelomic fluid play a crucial role in enhancing soil health and promoting plant growth. Copper oxychloride, a commonly used fungicide, induces oxidative stress by disrupting antioxidant defense mechanisms in living systems. Through probit analysis, the median lethal concentration (LC50) of copper oxychloride was determined to be 2511.9 mg/kg. Artificial soil was treated with copper oxychloride at 60% and 80% of LC50, but the addition of iron nanoparticle-coated fungicide successfully reduced earthworm mortality to 0%. These findings offer promising insights into protecting non-target organisms from fungicide toxicity while maintaining agricultural productivity. The findings present a potential breakthrough in sustainable agriculture by demonstrating how nanotechnology can mitigate the harmful effects of fungicides on essential soil fauna. The use of iron nanoparticle-coated fungicides not only protects earthworms but also offers a path to maintaining ecological balance and enhancing crop productivity without compromising soil health.