In the last decade it has been witnessed significant developments in the area of nano particles and nano scale fillers on electrical, thermal, and mechanical properties of polymeric materials such as resins, varnishes, enamel and bakelites. The electric and thermal properties were more important in the electrical equipments for both steady state and transient state conditions. This paper deals with the characterization of the electric and thermal properties of the pure varnish and zirconia (ZrO2) filler mixed varnish. The electric properties such as dielectric loss (tan δ), dielectric constant (e), dielectric strength and partial discharge voltage were analyzed and detailed for different samples. It was observed that zirconia nano filler mixed varnish has the superior dielectric and thermal properties when compared to those of standard varnish. It has shown that at power frequency the 1wt% nano composite sample has the higher permittivity value when compared to other samples. It has been examined that the 1wt% sample was having higher inception and extinction voltages when compared to other samples. It has been observed that 1wt% sample has higher dielectric strength when compared with other samples. There has been an improvement of thermal property by adding few weight percent of zirconia nano fillers. There was not much variation in glass transition among the nano mixed composites. The weight loss was improved at 1wt% of the zirconia nano fillers.