Soil iron-bound organic carbon (Fe-OC) is a quantitatively important and exceptionally stable fraction of the soil organic carbon (SOC) pool. Owing to its relatively high proportion and stability, it plays a key role in mediating the soil carbon cycle and sustaining long-term carbon sequestration. As an effective strategy for enhancing soil carbon sequestration capacity and alleviating the adverse impacts of climate change, vegetation restoration has garnered increasing attention regarding its impacts on soil carbon dynamics and the underlying mechanisms. This review systematically synthesized recent research findings pertaining to the influences of vegetation restoration on soil Fe-OC. First, it sorted out the basic characteristics of Fe-OC, clarifying that Fe-OC binds to iron oxides primarily through adsorption and coprecipitation processes, and meanwhile identified two major formation pathways: microbial-mediated transformation of organic substrates and direct adsorption of plant-derived dissolved organic matter. On this basis, it elucidated the dynamic patterns of Fe-OC under vegetation restoration, its changes are regulated by soil texture and vegetation type (Fe-OC tends to accumulate in coarse-textured soils but decreases in fine-textured soils, and forestland exhibits a stronger Fe-OC accumulation effect than grassland and shrubland). Further, it analyzed key influencing factors, including the composition and molecular properties of SOC, the speciation and reactivity of iron oxides, as well as soil microbial traits, and interpreted the coupled regulatory mechanisms through which vegetation restoration governs the formation, accumulation, and stability of Fe-OC from physical processes (soil aggregate formation and soil moisture regime regulation), chemical reactions (shifts in SOC molecular structure and iron valence transformation), and biological activities (microbial metabolic processes and organic acid exudation). Also, this review identified the existing knowledge gaps and limitations in current research, and proposed that future studies should expand the coverage of diverse climatic zones, accurately quantify the relative contribution ratios of plant- and microbe-derived carbon to Fe-OC pools, strengthen the analysis of the role of soil microbial functions in the formation and stabilization of Fe-OC, and integrate the complex drivers of global change to simulate Fe-OC dynamics under multifactorial scenarios. Only through such comprehensive and interdisciplinary approaches can the intricate mechanistic responses of Fe-OC to vegetation restoration be fully unveiled. This review delineates prospective research directions for the study of soil Fe-OC dynamics under vegetation restoration, facilitates a more comprehensive understanding of the impacts of vegetation restoration on the soil carbon cycle, and provides an important scientific basis for formulating soil carbon sink management strategies to address global climate change.