Cadmium (Cd), as the most prevalent heavy metal contaminant poses serious risks to plants, humans, and the environment. The ubiquity of this toxic metal is continuously increasing due to the rapid discharge of industrial and mining effluents and the excessive use of chemical fertilizers. Nanoparticles (NPs) have emerged as a novel strategy to alleviate Cd toxicity. Zinc oxide nanoparticles (ZnO-NPs) have become the most important NPs used to mitigate the toxicity of abiotic stresses and improve crop productivity. The plants quickly absorb Cd, which subsequently disrupts plant physiological and biochemical processes and increases the production of reactive oxygen species (ROS), which causes the oxidation of cellular structures and significant growth losses. Besides this, Cd toxicity also disrupts leaf osmotic pressure, nutrient uptake, membrane stability, chlorophyll synthesis, and enzyme activities, leading to a serious reduction in growth and biomass productivity. Though plants possess an excellent defense mechanism to counteract Cd toxicity, this is not enough to counter higher concentrations of Cd toxicity. Applying Zn-NPs has proven to have significant potential in mitigating the toxic effects of Cd. ZnO-NPs improve chlorophyll synthesis, photosynthetic efficiency, membrane stability, nutrient uptake, and gene expression, which can help to counter toxic effects of Cd stress. Additionally, ZnO-NPs also help to reduce Cd absorption and accumulation in plants, and the complex relationship between ZnO-NPs, osmolytes, hormones, and secondary metabolites plays an important role in Cd tolerance. Thus, this review concentrates on exploring the diverse mechanisms by which ZnO nanoparticles can alleviate Cd toxicity in plants. In the end, this review has identified various research gaps that need addressing to ensure the promising future of ZnO-NPs in mitigating Cd toxicity. The findings of this review contribute to gaining a deeper understanding of the role of ZnO-NPs in combating Cd toxicity to promote safer and sustainable crop production by remediating Cd-polluted soils. This also allows for the development of eco-friendly approaches to remediate Cd-polluted soils to improve soil fertility and environmental quality.