The clay-based Fe-bearing catalyst was successfully prepared through ion-exchange reaction and applied as heterogeneous catalyst for discoloration of acid fuchsine (AF) in an aqueous solution by Fenton-like reaction. Experimental results demonstrated that the AF discoloration ratios increased by increasing Fe-loaded clay dosage and initial $H_2O_2$ concentration, and by decreasing the pH, respectively. The lower the initial AF concentration, the shorter the reaction time needed to achieve complete discoloration of AF. Comparative studies indicated that AF discoloration ratios were much higher in presence of Fe-loaded clay and $H_2O_2$ than those in presence of $H_2O_2$, raw natural clay or Fe-loaded clay only and raw natural clay and $H_2O_2$ jointly. After AF discoloration, there existed no new phases in the clay samples detected by XRD and no change in the clay crystal morphology observed by SEM. A mechanism proposed suggested adsorption and Fenton-like reaction were responsible for discoloration of AF.