This study focuses on the fabrication and characterization of nanostructured zinc oxide films deposited on glass substrates using sol–gel dip-coating methods. The thin films are functionalized with silver ions at various Ag+ concentrations (10−2, 10−3, 10−4 M) through room temperature ion fixation process with and without ultraviolet (UV) illumination. Physicochemical characterization techniques, such as employing Scanning Electron Microscopy with Energy-dispersive X-ray spectroscopy (SEM-EDX), X-ray Diffraction (XRD), X-ray Photoelectron Spectroscopy (XPS), Ultraviolet–Visible Spectroscopy and Electron Paramagnetic Resonance (EPR) techniques. The SEM-EDX and XRD confirmed a characteristic ganglia-like structure with a hexagonal crystalline structure. The photocatalytic performance and available surface area of the pure and Ag films are investigated in the removal of methylene blue dye under UV and visible light illumination and in darkness. It is observed that the photocatalytic activity increases proportionally to the Ag+ ion concentration: ZnO < Ag(10−4 M)/ZnO, < Ag(10−3 M)/ZnO < Ag(10−2 M)/ZnO. Moreover, the catalysts modified under UV illumination during the fixation treatment (Ag-UV/ZnO) exhibited a higher photocatalytic efficiency and degraded the dye in comparison with those without a light source (Ag/ZnO). The experimental results are confirmed using total organic carbon (TOC) analysis. The optimal silver concentration (10−2 M) is established, which shows the highest photocatalytic efficiency (in both cases of ion fixation treatment). The results can be used as a guideline for the development of co-catalyst-functionalized semiconductor photocatalysts.