The oxychloride SrTe₂FeO₆Cl is obtained by high-temperature solid-state synthesis under inert conditions in closed reaction vessels. The compound crystallizes in a novel monoclinic crystal structure that is described in the space group P12₁/n1 (No. 14). The unit cell parameters, a = 10.2604(1) Å, b = 5.34556(5) Å, c = 26.6851(3) Å, and β = 93.6853(4)°, and atomic parameters were determined from synchrotron diffraction data, starting from a model that was obtained from single-crystal X-ray diffraction data. The anion lattice exhibits a rare ordering of oxide and chloride ions: one-dimensional zig-zag ladders of chlorine (squarelike motif) are surrounded by an oxygen matrix. Two different iron sites coordinated solely to oxygen are present in the structure, one octahedral and one square pyramidal, both distorted. Similarly, two different strontium coordinations are present; the first homoleptic coordinated to eight oxygen atoms and the second heteroleptic coordinated to four oxygen and four chlorine atoms in a fac-like manner. The lone pair of Te(IV) is directed toward the larger chlorine atoms. Magnetic susceptibility measurements confirm that Fe is +3 (d⁵) in the high-spin electronic configuration, exhibiting an almost ideal spin-only moment, μ_eff = 5.65 μ_B Fe^-1. The slightly negative Weiss constant (θ_CW = −39 K) suggests dominating antiparallel spin-to-spin coupling in the paramagnetic temperature range, agreeing with an observed long-range antiferromagnetic spin ordering below Néel temperature, T_N ∼ 13 K, and a broad second order-like anomaly in the specific heat measurement data. Low-temperature neutron diffraction data reveal that the antiferromagnetic ordered phase is C-type, with a k-vector (1/2, 1/2, 0) and ordered moment of 4.14(7) μ_B. The spin structure can be described as antiferromagnetic ordered layers stacked along the a-axis, forming layers of squares that alternate along the c-axis.