Ultrasonic irradiation and solution dispersion methods were used to organize transparent worthwhile poly(vinyl chloride) (PVC) nanocomposite (NC) films which contain different amounts of modified zinc oxide nanoparticles (NP)s. First, modification of ZnO NPs was accomplished by biocompatible poly(vinyl alcohol) (PVA) to increase NCs compatibility and dispersity in the PVC matrix. The investigation followed by the fabrication and characterization of PVC/ZnO‐PVA NCs which obtained via fast and facile ultrasonication irradiation. The measurements of X‐ray diffraction, Fourier transform infrared spectroscopy, transmission electron microscopy, and field emission scanning electron microscopy were used for the characterization of properties, structure and morphology of the obtained NPs and their NCs. Furthermore, thermal and optical properties of the resulting NCs were also carried out by thermogravimetric analysis, ultraviolet‐visible transmission, and absorption spectra. Morphology results demonstrate well‐dispersed characteristics of ZnO‐PVA NPs incorporated in the PVC matrix which resulted from modification. Also, modified ZnO NPs enhanced mechanical properties of prepared NC films. Prepared NCs could be categorized as self‐extinguishing materials on the basis of the limiting oxygen index values. POLYM. COMPOS., 38:1800–1809, 2017. © 2015 Society of Plastics Engineers