In this study, we evaluated a new material, Iron oxide doped TiO₂ containing Fe_xO_y as a conducting component, to reduce the large band gap of pure TiO₂. To investigate the structural effect of the catalyst on photocatalysis, Fe-containing TiO₂ photocatalysts with anatase and rutile structures were prepared using liquid phase plasma (LPP) method. The photocatalytic activity of Iron oxide doped TiO₂ was investigated with decomposition of dye in its aqueous solution. A simple method to prepare impregnated TiO₂ powder using LPP is described. This method offers iron nanoparticles impregnation in a single-step process. The effects of plasma discharge conditions are discussed and the resultant products are characterized using instrumental analysis. The presented method is easily scalable and highly reproducible, and expected to be extended to prepare other material coated by nanocrystals.