Strong coupling effects in a dielectric microcavity with a single ZnO nanowire embedded in it have been investigated at room temperature. A large Rabi splitting of ~100 meV is obtained from the polariton dispersion and a non-linearity in the polariton emission characteristics is observed at room temperature with a low threshold of 1.63 μJ/cm(2), which corresponds to a polariton density an order of magnitude smaller than that for the Mott transition. The momentum distribution of the lower polaritons shows evidence of dynamic condensation and the absence of a relaxation bottleneck. The polariton relaxation dynamics were investigated by time-resolved measurements, which showed a progressive decrease in the polariton relaxation time with increase in polariton density.