The new design of the photocatalytic reactor is crucial to study for improving compatibility and scaling up the operation. A compatible loop photocatalytic reactor has been designed and used for rhodamine B decomposition. The photocatalysts were either ZnO or Fe-ZnO immobilized onto fiberglass cloth. The ZnO catalyst exhibited high crystallinity with or without Fe as the dopant. The crystallite size increased with the presence of Fe in the lattices. Most of the crystal parameters matched the standard ZnO data, and the cluster size was comparable to most reported studies. Diffuse Reflectance Spectroscopy (DRS) analysis confirmed the photon absorption shifted to the visible light range. The Fe dopant decreased the ZnO bandgap, and SEM-EDS confirmed the catalysts adhered to the fiberglass surface. The volume, thickness of the substrate solution, and reaction temperature influenced the photocatalytic-degradation rate. The photocatalytic degradation rate was higher under sunlight than ultraviolet irradiation. The reaction rate was lower in the batch reactor than in the loop reactor. The photocatalytic reaction almost completely mineralized RhB and changed the red solution to colorless. The immobilized photocatalyst has been reused more than 50 times without significantly decreasing the catalytic activity.