Inorganic-organic-bentonite was synthesized by modification of bentonite by Hydroxy-iron and surfactant, which could be applied in dye removal by adsorption and catalysis. The removal of acid dye Orange II was studied at various factors such as time and pH of solution. The results showed that the inorganic-organic-bentonite could efficiently remove the dye with efficiency of 96.22%. The maximum adsorption capacity is 76 mg/g. The pH of solution has significant effect on both adsorption and catalysis. When pH was 4, the maximum removal efficiency of adsorption and catalysis were 97.57% and 87.23%, respectively. After degradation, the secondary pollution was diminished and the bentonite could be reused.