Hydrophobic and surfactant-free ZnO nanoparticles and ZnO decorated graphene nanocomposite (Z@G) with narrow and uniform size distribution were synthesized by a time-efficient microwave-assisted hydrothermal reaction that can be used specifically for application in hybrid photovoltaics. The synthesized ZnO nanoparticles and Z@G nanocomposite showed stable and clear dispersion in chloroform and methanol (with volume ratio of 9 : 1) and chloroform and ethanol (volume ratio 9 : 1).Being hydrophobic, these inorganic samples blend very well with organic polymer solution in chlorobenzene, which is a prerequisite to cast smooth and undisrupted film for hybrid solar cell application. The introduction of these hydrophobic nanoparticles into PCPDTBT:PCBM-based bulkheterojunction polymer solar cells resulted in significant improvement in solar cell J-V characteristics with enhancement in open circuit voltage (V OC ), short circuit current density (J SC ) and thereby overall improvement in cell efficiency. With the optimization of the weight ratio of polymer, fullerene and synthesized ZnO nanoparticles/Z@G nanocomposite, the power conversion efficiencies 1.76% and 3.65% were achieved.