Catalytic syngas conversion to liquid fuel is pivotal for biomass utilization, enhancing energy security, reducing carbon emissions and curbing reliance on petroleum imports. Herein, bifunctional catalysts comprising zinc-zirconium dioxide (ZnZrO2) dispersed on nitrogen-doped multi-walled carbon nanotubes (NCNT) (ZnZrO2/NCNT) were successfully designed, enabling the simultaneous production of both diesel fuels (C9–C16 hydrocarbon) and methanol through direct syngas conversion. Operating at 450 °C, 4.5 MPa, a gas hourly space velocity (GHSV) of 4800 mL h−1·gcat−1, the ZnZrO2/NCNT catalyst, featuring 2.6% nitrogen doping, exhibited exceptional performance, achieving a 50.3% selectivity for C9–C16 hydrocarbons and a 26.4% selectivity for methanol, while maintaining a 52.5% single-pass CO conversion rate. The C9+ selectivity significantly surpasses the bottleneck predicted by the ASF distribution theory (C9+ selectivity <36%). This starkly contrasts that of ZnO/NCNT (1.7% C9–C16 and 6.3% methanol) and ZrO2/NCNT (32.5% C9–C16 and 25.4% methanol) catalysts. Moreover, the ZnZrO2/NCNT catalyst still retained C9+ 51.5% selectivity and 25% methanol selectivity after 100 h of continuous operation. The synergistic effects resulting from the amalgamation of highly active nanostructured units with a well-encapsulation structure efficiently hinder active component migration during catalysis. This significantly enhances both the catalyst's activity and stability. Furthermore, nitrogen introduction serves as a key electron donor to ZnZrO2, thereby catalyzing the activation of CO dissociation. This activation step emerges as a pivotal factor crucial for enhancing selectivity in liquid fuel production.