We obtained natural red soil (RS), rich in iron, from the region of Palotina in the state of Paraná, Brazil. The RS sample was purified by suspension in water and sieved to remove plant particulates. It was then treated thermally at 800°C to remove organic volatiles; this sample was called RS800. The samples were characterized using X-ray diffraction, X-ray fluorescence, infrared and electronic spectroscopy, ζ-potential analysis and scanning electron microscopy. Colorimetric studies were performed according to the CIEL*a*b* system. Tests have shown that RS800 has the ability to remove methylene blue (MB) dye from wastewater. Thus, it was used as an adsorbent at various temperatures (25, 35, 45°C). According to the Langmuir model, the maximum adsorption capacity (qmax) was 23.256 mg g–1 (25°C). Unexpectedly, increasing temperature reduced qmax to 21.659 mg g–1 at 35°C and to 21.186 mg g–1 at 45°C. Therefore, RS800 must be used at room temperature (25°C), making its application in large-scale wastewater treatment feasible. After using RS800 as an adsorbent, the solids were filtered, dried, pulverized, and used as hybrid pigments in commercial white paints. Pigmented paints were used to paint a plaster specimen and colorimetric measurement was performed. These paints were tested for colour stability in acidic and alkaline environments. The results indicate that RS800 is efficient in the treatment of water contaminated with cationic dyes and can be reused as a hybrid pigment.