Mg-doped Fe2O3 nanoparticles (M-FNPs) are successfully prepared first time by facile green-aided (almond gum) combustion route. The structural analysis of synthesized nanoparticles was well analyzed by Powder X-ray Diffraction (PXRD), Fourier Transform Infrared spectroscopy (FT-IR), Scanning Electron Microscope (SEM), Raman spectroscopy and UV-Visible spectral studies. PXRD showed a nanocrystalline nature and determined the average particle size to be 85 nm. The surface morphologies of the prepared nanocomposite was measured by SEM technique reveals the porous and spongy like structure. The photodegradation activity on 20 × 10−6 of Fast Orange Red (FOR) organic model dye using M-FNPs (50 mg) under UV light irradiation was investigatedin detail. Electrochemical examination of the prepared material was conducted using graphite–M-FNP electrode paste in 0.1 M KCl solution, and its performance in redox reaction was determined to be very good via cyclic voltammetry and electrochemical impedance spectroscopy. Further, an extension to sensor studies revealed broad differences in redox positions for paracetamol sensors, at 0.64 V and 0.41 V, confirming highly chemical sensor activity in alkaline medium for 1∼5 mM concentrations.