Coal desulfurization remains a critical environmental challenge due to stringent sulfur emission regulations and the need for cleaner energy sources. This study presents a novel magnetically separable Cu-TiO2/Fe3O4 nanocomposite synthesized via an optimized sol–gel method for efficient photocatalytic oxidative desulfurization (PODS) of coal under sunlight irradiation. The heterojunction photocatalyst was systematically characterized using X-ray diffraction (XRD), scanning electron microscopy (SEM), transmission electron microscopy (TEM), Raman spectroscopy, photoluminescence (PL), and UV–vis diffuse reflectance spectroscopy (DRS). The optimal 3.0% Cu-TiO2/Fe3O4 (1:1) nanocomposite demonstrated exceptional photocatalytic performance, achieving 73.30% sulfur removal efficiency under optimized conditions: 150 mg catalyst dosage, 500 mg coal, 20 mL H2O2 (30 wt%), and a 5-h reaction time under direct sunlight. The enhanced photocatalytic activity is attributed to the formation of a Type-II heterojunction that facilitates efficient charge separation, reduces electron–hole recombination, and extends light absorption into the visible region (band gap: 1.90 eV). Kinetic studies revealed pseudo-first-order reaction kinetics with a rate constant of 0.278 h⁻1. The photocatalyst exhibited excellent reusability, maintaining 68.5% of its initial activity after five consecutive cycles with excellent magnetic recovery. The photocatalytic mechanism involves the generation of hydroxyl radicals (•OH) through both photocatalytic and Fenton-like processes, leading to the oxidation of organic sulfur compounds to polar sulfoxides and sulfones that are readily extractable. This work presents a sustainable and economically viable approach for coal desulfurization, offering significant potential for both industrial applications and environmental remediation.