Carbon recycling is poised to emerge as a prominent trend for mitigating severe climate change and meeting the rising demand for energy. Converting carbon dioxide (CO2) into green energy and valuable feedstocks through photocatalytic CO2 reduction (PCCR) offers a promising solution to global warming and energy needs. Among all semiconductors, zinc oxide (ZnO) has garnered considerable interest due to its ecofriendly nature, biocompatibility, abundance, exceptional semiconducting and optical properties, cost‐effectiveness, easy synthesis, and durability. This review thoroughly discusses recent advances in mechanistic insights, fundamental principles, experimental parameters, and modulation of ZnO catalysts for direct PCCR to C1 products (methanol). Various ZnO modification techniques are explored, including atomic size regulation, synthesis strategies, morphology manipulation, doping with cocatalysts, defect engineering, incorporation of plasmonic metals, and single atom modulation to boost its photocatalytic performance. Additionally, the review highlights the importance of photoreactor design, reactor types, geometries, operating modes, and phases. Future research endeavors should prioritize the development of cost‐effective catalyst immobilization methods for solid‐liquid separation and catalyst recycling, while emphasizing the use of abundant and non‐toxic materials to ensure environmental sustainability and economic viability. Finally, the review outlines key challenges and proposes novel directions for further enhancing ZnO‐based photocatalytic CO2 conversion processes.