An iron oxychloride (FeOCl) catalyst was developed for oxidative degradation of persistent organic compounds in aqueous solutions. Exceptionally high activity for the production of hydroxyl radical (OH·) by H2O2 decomposition was achieved, being 2–4 orders of magnitudes greater than that over other Fe-based heterogeneous catalysts. The relationship of catalyst structure and performance has been established by using multitechniques, such as XRD, HRTEM, and EPR. The unique structural configuration of iron atoms and the reducible electronic properties of FeOCl are responsible for the excellent activity. This study paves the way toward the rational design of relevant catalysts for applications, such as wastewater treatment, soil remediation, and other emerging environmental problems.