Addressing the dual challenges of antimicrobial resistance and pharmaceutical contamination in wastewater is crucial for global health and environmental preservation. Predictions estimate up to 10 million annual deaths by 2050 due to antimicrobial resistance, underscoring the urgent need for innovative solutions. This study explores the potential of zinc oxide Sub-Microparticles (ZnO SMPs) doped with iron (Fe) to enhance the photocatalytic degradation of pharmaceutical compounds in water and improve antimicrobial efficacy. A green laser-assisted chemical bath synthesis method created ZnO SMPs with varying Fe dopant concentrations (1 %, 1.5 %, and 3 %). The synthesized Sub-Microparticles underwent rigorous structural analysis using X-ray diffractometry, SEM, EDX, FTIR, and UV–visible spectrophotometry techniques. Their photocatalytic performance was evaluated in the degradation of paracetamol under blue laser light, and their antimicrobial properties were assessed following CLSI guidelines. Structural analyses confirmed the hexagonal wurtzite structure of ZnO SMPs, with noticeable changes due to Fe doping, including a transition from sub-microrods to sub-microsheets and a redshift in the optical band gap. Photocatalytic tests revealed a significant enhancement in paracetamol degradation efficiency, increasing from 53.41 % with pure ZnO to 98.99 % with 3 % Fe-doped ZnO in 50 min. Antimicrobial assays demonstrated an increased inhibitory effect against pathogens, with Fe-doped ZnO outperforming control discs. This study substantiates the potential of Fe-doped ZnO SMPs in wastewater treatment and antimicrobial applications, showcasing significant improvements in photocatalytic degradation of pharmaceutical compounds and antimicrobial efficacy. The findings underscore the importance of continuing research in this domain for environmental and public health benefits.