Polymer composites have established an excellent position among the technologically essential materials because of their wide range of applications. An enormous research interest has been devoted to zinc oxide (ZnO) based polymer nanocomposites, due to their exceptional electrical, optical, thermal, mechanical, catalytic, and biomedical properties. This article provides a review of various polymer composites consisting of ZnO nanoparticles (NPs) as reinforcements, exhibiting excellent properties for applications such as the dielectric, sensing, piezoelectric, electromagnetic shielding, thermal conductivity and energy storage. The preparation methods of such composites including solution blending, in situ polymerization, and melt intercalation are also explained. The current challenges and potential applications of these composites are provided in order to guide future progress on the development of more promising materials. Finally, a detailed summary of the current trends in the field is presented to progressively show the future prospects for the development of ZnO containing polymer nanocomposite materials.