An emerging pollutant, diatrizoate (DTZ) has been frequently detected in aqueous solution. Unique reticular peanut shell biochar (BC)-supported nano zero-valent iron (nZVI) composite (nZVI/BC) was successfully synthesized and used as a catalyst for activating persulfate (PS) to promote the removal of DTZ. The structure and morphology of the nanocomposite materials were characterized by scanning electron microscopy, X-ray diffraction, Brunauer-Emmett-Teller measurements, and Fourier transform infrared spectroscopy. The degradation of DTZ (20 mg L⁻¹) was achieved by activating PS with the nanocomposite material. The removal of DTZ reached nearly 100% using 25 mM PS and 0.45 g L⁻¹ nZVI/2BC (mass ratio of nZVI and BC at 1:2) nanocomposite material at pH 3.0 and 25 °C. Influencing factors, such as dosages of nZVI/2BC and PS, temperature, and pH were also investigated. The mechanisms of PS activation with nZVI/2BC were discussed, including BC property, electron transfer, and the identification of free radicals in the reaction. The findings demonstrated that nZVI/BC-PS (peanut shell BC-supported nZVI activating PS) is a promising material for the treatment of refractory organic pollutants.