Dye sensitization is a promising approach to enhance the luminescence of lanthanide-doped upconverting nanoparticles. However, the poor photostability of near-infrared dyes hampers their use in practical applications. To address this, commercial IR820 was modified for improved photostability and covalently bonded to amine-functionalized silica-coated LnUCNPs. Two methods of covalent linking were investigated: linking the dye to the surface of the silica shell, and embedding the dye within the silica shell. The photostability of the dyes when embedded in the silica shell exhibited upconversion emissions from NaGdF4:Er3+,Yb3+/NaGdF4:Yb3+ nanoparticles for over four hours of continuous excitation with no change in intensity. To highlight this improvement, the photostable dye-embedded system was successfully utilized for Fenton-type photocatalysis, emphasizing its potential for practical applications. Overall, this study presents a facile strategy to circumvent the overlooked limitations associated with photodegradation, opening up new possibilities for the use of dye-sensitized lanthanide-doped upconverting nanoparticles in a range of fields.