1,1,1-Trichloroethane (1,1,1-TCA) is a typical organochloride solvent in groundwater that poses threats to human health and the environment due to its carcinogenesis and bioaccumulation. In this study, a novel composite with nanoscale zero-valent iron (nZVI) supported by polycaprolac-tone (PCL)-modified biochar (nZVI@PBC) was synthesized via solution intercalation and liquid-phase reduction to address the 1,1,1-TCA pollution problem in groundwater. The synergy effect and improvement mechanism of 1,1,1-TCA removal from simulated groundwater in the presence of nZVI@PBC coupling with CN32 were investigated. The results were as follows: (1) The composite surface was rough and porous, and PCL and nZVI were loaded uniformly onto the biochar surface as micro-particles and nanoparticles, respectively; (2) the optimal mass ratio of PCL, biochar, and nZVI was 1:7:2, and the optimal composite dosage was 1.0% (w/v); (3) under the optimal conditions, nZVI@PBC + CN32 exhibited excellent removal performance for 1,1,1-TCA, with a removal rate of 82.98% within 360 h, while the maximum removal rate was only 41.44% in the nZVI + CN32 treatment; (4) the abundance of CN32 and the concentration of adsorbed Fe(II) in the nZVI@PBC + CN32 treatment were significantly higher than that in control treatments, while the total organic carbon (TOC) concentration first increased and then decreased during the culture process; (5) the major improvement mechanisms include the nZVI-mediated chemical reductive dechlorination and the CN32-mediated microbial dissimilatory iron reduction. In conclusion, the nZVI@PBC composite coupling with CN32 can be a potential technique to apply for 1,1,1-TCA removal in groundwater.