Degradation of model organic dye and industry effluent was studied using different weight percentages of Ag into ZnO as a catalyst. In this study, the catalysts were prepared by thermal decomposition method, which was employed for the first time in the preparation of ZnO/Ag nanocomposite catalysts. The physical and chemical properties of the prepared samples were studied using various techniques. The specific surface area, which plays an important role in the photocatalytic degradation, was studied using BET analysis and 10 wt.% Ag into ZnO showed the best degrading efficiency. The optical absorption (UV-vis) and emission (PL) properties of the samples were studied and results suggest better photocatalytic properties for 10 wt.% Ag sample compared to other samples.