Toxic dyes in water bodies and bacterial pathogens pose serious global challenges to human health and the environment. Zinc oxide nanoparticles (ZnO NPs) demonstrate remarkable photocatalytic and antibacterial potency against reactive dyes and bacterial strains. In this work, PVP-ZnO NPs have been prepared via the co-precipitation method using polyvinylpyrrolidone (PVP) as a surfactant. The NPs’ microstructure and morphology were studied using X-ray diffraction (XRD), having a size of 22.13 nm. High-resolution transmission electron microscope (HR-TEM) and field emission scanning electron microscopy (FESEM) analysis showed spherical-shaped PVP-ZnO NPs with sizer ranging from 20 to 30 nm. Fourier Transform Infrared Spectroscopy (FT-IR) confirmed the hybrid nature of the NPs, and UV–Vis spectroscopy showed an absorption peak at 367 nm. The PVP-ZnO NPs exhibited high photocatalytic activity, achieving 88% and nearly 95% degradation of reactive red-141 azo dye with 10 mg and 20 mg catalyst dosages, respectively. The antibacterial properties of the NPs were demonstrated against Escherichia coli and Bacillus subtilis, with inhibition zones of 24 mm and 20 mm, respectively. These findings suggest that PVP-ZnO NPs can be effectively used for water treatment, targeting both dye and pathogenic contaminants.