A majority of clay minerals contain Fe, and the redox cycling of Fe(III)/Fe(II) in clay minerals has been extensively studied as it may fuel the biogeochemical cycles of nutrients and govern the mobility, toxicity and bioavailability of a number of environmental contaminants. There are three types of Fe in clay minerals, including structural Fe sandwiched in the lattice of clays, Fe species in interlayer space and adsorbed on the external surface of clays. They exhibit distinct reactivity towards contaminants due to their differences in redox properties and accessibility to contaminant species. In natural environments, microbially driven Fe(III)/Fe(II) redox cycling in clay minerals is thought to be important, whereas reductants (e.g., dithionite and Fe(II)) or oxidants (e.g., peroxygens) are capable of enhancing the rates and extents of redox dynamics in engineered systems. Fe(III)-containing clay minerals can directly react with oxidizable pollutants (e.g., phenols and polycyclic aromatic hydrocarbons (PAHs)), whereas structural Fe(II) is able to react with reducible pollutants, such as nitrate, nitroaromatic compounds, chlorinated aliphatic compounds. Also structural Fe(II) can transfer electrons to oxygen (O₂), peroxymonosulfate (PMS), or hydrogen peroxide (H₂O₂), yielding reactive radicals that can promote the oxidative transformation of contaminants. This review summarizes the recent discoveries on redox reactivity of Fe in clay minerals and its links to fates of environmental contaminants. The biological and chemical reduction mechanisms of Fe(III)-clay minerals, as well as the interaction mechanism between Fe(III) or Fe(II)-containing clay minerals and contaminants are elaborated. Some knowledge gaps are identified for better understanding and modelling of clay-associated contaminant behavior and effective design of remediation solutions.