Sustainable sediment management increasingly requires integrated strategies that couple dredging operations with in situ or ex situ contaminant treatment. This study investigates the reutilization of Kanbara Reactor Dust (KRD), a steel-making by-product rich in FeO and CaO, as a heterogeneous catalyst for activating peracetic acid (PAA) in advanced oxidation processes targeting contaminated dredged sediments and associated water resources. The KRD/PAA system was evaluated using ofloxacin (5 mg L⁻¹) as a model emerging contaminant. Complete removal was achieved within 180 min under ambient conditions at 200 mg L⁻¹ KRD and 2 mM PAA. The high catalytic performance is attributed to iron-based active sites that promote efficient PAA activation and the generation of reactive oxygen species (ROS). Comprehensive physicochemical characterization (SEM, FTIR, XRD, XPS, Raman spectroscopy, and BET analysis) elucidated the structural and compositional features governing catalytic reactivity. The influences of coexisting anions (Cl⁻, SO4 2-, HCO3 -, H2PO4⁻), humic acid, and natural water matrices were systematically assessed to evaluate robustness under realistic conditions. This work demonstrates the feasibility of valorizing steel industry by-products as low-cost catalysts for waste water contaminant oxidation, supporting the development of sustainable dredging practices through integrated waste recycling and environmental remediation.