Herein, we reports synthesis, characterization and photocatalytic degradation of Rhodamine B under natural sunlight using zinc oxide and Ag–ZnO composite. Zinc oxide nanoparticles were prepared by simple wet chemical method using ethanol–water mixture. Ag–ZnO composite was prepared in two steps by dispersing synthesized ZnO in silver nitrate solution and subsequently reducing it with Ocimum tenuiflorum leaves extract as bioreducing agent. The synthesized bare zinc oxide and Ag–ZnO composite was characterized by various techniques like XRD, DRS, FE-SEM, TEM, SAED, PSD, Zeta potentials, etc. Zinc oxide being wide band gap material can absorbs UV light from solar spectrum which is only 5% so is not efficient material for dye degradation under sunlight. The absorption of visible light was increased by preparing the Ag–ZnO composite. The enhancement in photocatalytic activities of Ag–ZnO composite was observed than bare ZnO. This enhancement is due to shift of absorption edge of ZnO in visible region and decrease in band gap.