In this paper, we describe the creation of a moderate band gap Nd-substituted Ni-Zn ferrite as a nano photo catalyst via a simple and cost-effective process of solution combustion. Nd substitution alters the crystallite size, shape, band gap, and magnetic characteristics of Ni-Zn ferrite significantly. Investigations using X-ray diffraction revealed that all samples display a pure phase. The average crystallite size was determined to be between 31.34 and 38.67 nm. On Nd doping, morphology investigations indicated that the shape of nanoparticles changed from approximately spherical to stacked grains. Band gap experiments confirmed the red shift in optical band gap on Nd doping. The synthesized catalysts Ni0.5Zn0.5Fe2O4 (Nd0), Ni0.5Zn0.45Nd0.05Fe2O4 (Nd1), and Ni0.5Zn0.5Nd0.05Fe1.95O4 (Nd2) have been effectively used for the degradation of methylene blue dye under the solar light irradiation. The sample with Nd substitution on Fe sites had the highest methylene blue degradation efficiency. Nd2 photo catalyst degrades the methylene blue dye with a degradation efficiency of 98% in 90 min of solar light irradiation. The photocatalytic activity is triggered by the existence of oxygen vacancies and a mixed valence state of Ni, Fe, and Nd, as confirmed by the XPS investigation. In addition, the investigations on scavenging reveal that the hydroxyl radical is a reactive component in the degradation process. The degradation route has been investigated in relation to the many potential reactions and discovered reactive substances.