The exacerbated global water scarcity and stricter water directives are leading to an increment in the recycled water use, requiring the development of new cost-effective advanced water treatments to provide safe water to the population. In this sense, peracetic acid (PAA, CH3C(O)OOH) is an environmentally friendly disinfectant with the potential to challenge the dominance of chlorine in large wastewater treatment plants in the near future. PAA can be used as an alternative oxidant to H2O2 to carry out the Fenton reaction, and it has recently been proven as more effective than H2O2 towards emerging pollutants degradation at circumneutral pH values and in the presence of anions. PAA activation by homogeneous and heterogeneous iron-based materials generates - besides HO• and FeO2+ - more selective CH3C(O)O• and CH3C(O)OO• radicals, slightly scavenged by typical HO• quenchers (e.g., bicarbonates), which extends PAA use to complex water matrices. This is reflected in an exponential progress of iron-PAA publications during the last few years. Although some reviews of PAA general properties and uses in water treatment were recently published, there is no account on the research and environmental applications of PAA activation by Fe-based materials, in spite of its gratifying progress. In view of these statements, here we provide a holistic review of the types of iron-based PAA activation systems and analyse the diverse iron compounds employed to date (e.g., ferrous and ferric salts, ferrate(VI), spinel ferrites), the use of external ferric reducing/chelating agents (e.g., picolinic acid, l-cysteine, boron) and of UV-visible irradiation systems, analysing the mechanisms involved in each case. Comparison of PAA activation by iron vs. other transition metals (particularly cobalt) is also discussed. This work aims at providing a thorough understanding of the Fe/PAA-based processes, facilitating useful insights into its advantages and limitations, overlooked issues, and prospects, leading to its popularisation and know-how increment.