Pure iron is a promising candidate for biodegradable temporary orthopedic implants due to its biocompatibility, favorable mechanical strength, and non-toxic degradation products. Atomet 195 SP is a high-purity water-atomized iron powder commercially produced for food enrichment, pharmaceutical-related, and other non-structural applications. Its commodity-scale water-atomization production route may offer a cost advantage over specialty gas-atomized additive manufacturing feedstocks; however, this powder has not previously been evaluated for laser powder bed fusion (L-PBF). This study presents the first investigation of its processability by L-PBF, systematically establishing process–structure–property relationships across a volumetric energy density ( \(E_v\) ) range of 34.09–120.00J mm−3. A Taguchi L16 orthogonal array was used to evaluate scanning speed, hatch spacing, and laser spot size. Scanning speed was identified as the dominant control factor for porosity (63.49% contribution, \(p = 0.007\) ) and surface roughness (57.76% contribution, \(p = 0.003\) ), with hatch spacing playing a significant secondary role; spot size was statistically insignificant. A processing window of 66–100J mm−3 yielded near-full densification, with a minimum porosity of 0.06% at \(E_{v} = 85.71J\;{\text{mm}}^{{ - 3}}\) —notably higher than the 47–55J mm−3 optimum reported for Atomet FeAM on the same machine, confirming that parameter transfer between water-atomized powder grades is not reliable. Within this optimal window, the material achieved porosities below 0.5%, Vickers hardness values of 148 to − 159HV, ultimate tensile strengths of 449.4-508.1MPa, yield strengths of 413.3-466.2MPa, and elongations of 14.1–22.8%. EBSD analysis revealed a fine ferritic microstructure with grain sizes of 4.0–5.3 μm and no detectable secondary phases. A pronounced yield point phenomenon at high energy densities progressively attenuated with decreasing energy input. Two specimens fabricated with different parameter combinations at the same nominal \(E_v\) exhibited subtle differences in grain size and mechanical response, reinforcing the limitation of energy density as a sole process descriptor. These results demonstrate that this low-cost water-atomized powder can be successfully processed by L-PBF with mechanical properties comparable to gas-atomized iron feedstocks, supporting its potential for biodegradable implant development.