This article reports novel ternary composites consisting of Fe2O3 nanorods, TiO2 nanoparticles, and graphene oxide (GO) flakes that provide enhanced photocatalytic performance and stability. Fe2O3 nanorods grow evenly and embed themselves on the agglomerated TiO2/GO surface, which facilitate the formation of heterojunctions for effective migration of charge carriers at the interface of Fe2O3/TiO2 in the ternary composites. The formation of heterostructured Fe2O3-TiO2/GO composites and the effect of GO addition on the photophysical properties of the composites were systematically investigated using various spectroscopic techniques. The photocatalytic performance of Fe2O3 was improved by coupling with TiO2 in the presence of GO, suggesting uncommon electron transfer from the conduction band of Fe2O3 to that of TiO2via GO under visible-light irradiation. An improved charge separation in the composite materials compared with that in bare Fe2O3 was confirmed by drastic fluorescence quenching and stronger absorption in the visible range. The optimum content of GO in the ternary composite was 1.0 wt%, which exhibited enhanced photocatalytic activity. The synergistic effect, heterostructured composite and role of GO, as an electron transporter, in the ternary composites account for the enhanced photocatalytic activity.