Research on high dielectric constant materials, such as zinc oxide (ZnO), has received significant attention due to their potential for modern microelectronics and high-density energy storage applications. However, the use of ZnO has been limited by its high dielectric loss. This study aims to reduce the dielectric loss of ZnO by investigating the effects of adding niobium oxide (Nb2O5) on its electrical properties. Four compositions with varying amounts of Nb2O5 (0, 0.5, 1, and 2wt%) were prepared. The disk samples were made via the pressing method and sintered at 1250 °C. In the sample with a high additive content, a secondary phase of ZnNb2O6 was identified. The addition of Nb2O5 resulted in substantial grain growth in the ZnO ceramic. The samples containing Nb2O5 showed reduced electrical conductivity and increased electrical resistance. The sample with 2 wt% Nb2O5 exhibited the lowest dielectric constant, dielectric loss, and electrical conductivity, along with the highest electrical resistance and ferromagnetic behavior. Particularly, this sample achieved an impressive dielectric constant of 52730 and a low dielectric loss of 0.32 at 1 kHz. This makes it a promising candidate for energy storage applications.