In this study, ternary blend nanocomposites were synthesized through a green in situ polymerization process, utilizing zinc oxide (ZnO) nanofillers into a polyvinyl alcohol/cashew gum/polypyrrole (PVA/CG/PPy) matrix. The optical, morphological, structural, thermal, mechanical, and electrical properties of these nanocomposites were comprehensively analyzed using UV–visible spectroscopy, FTIR, XRD, FE‐SEM, TGA, and DSC. The findings revealed strong interactions between PVA, CG, PPy, and ZnO, with the uniform growth of spherical ZnO nanoparticles within the blend. Increasing ZnO content led to a reduction in optical bandgap energy, reaching 3.375 eV at its minimum. XRD revealed an intensified ZnO signal in the nanocomposites with higher ZnO concentrations. Thermal stability (TGA) and glass transition temperature (DSC) improved with increasing ZnO content, signifying strong interfacial adhesion between ZnO and the PVA/CG/PPy blend matrix. The nanocomposites also exhibited enhanced AC electrical conductivity and dielectric properties compared to the pristine blend. Notably, the dielectric constant, dielectric loss, and impedance decreased with rising temperature. Mechanical properties improved with a 39.6% increase in tensile strength at 3 wt% ZnO loading. ZnO was identified as an optimal nanofiller at 3 wt%, enhancing mechanical, thermal, and electrical properties, making these nanocomposites promising candidates for eco‐friendly, robust, and efficient nanoelectronic devices.