Zirconium dioxide (ZrO2) has garnered substantial research interest in the field of photocatalytic water treatment due to its appealing properties, such as thermal stability, considerable physical strength, and strong chemical resistance. However, the wide bandgap energy endorses less photoabsorption and rapid charge carrier recombination kinetics, thus restricting the photoactivity of ZrO2. Previously, vast research efforts have been made to improve the photoefficacy of ZrO2, and hence it is worth exploring the potential strategic modifications responsible for incremented photocatalytic efficiency. In this regard, the present review article emphasizes the optical, structural, and electronic features of ZrO2, which makes it an interesting photocatalytic material. The exceptional modification strategies that help to modulate the crystal structure, morphology, bandgap energy, and charge carrier kinetics are primarily discussed. The potential synthetic routes involving bottom-up and top-down methods are also outlined for understanding the rationale for incorporating these techniques. Moreover, the photocatalytic performance evaluation was done by investigating the photodegradation kinetics of various organic and inorganic pollutants degradation by ZrO2. Conclusively, in light of research advances involving ZrO2 photocatalyst, this review article may expedite further investigation for enhancing the large-scale photocatalytic applications for environmental and energy concerns.