In this present work, BiOI sensitized zirconia (BiOI-ZrO2) nanoparticles were fabricated using a precipitation–deposition method. The physicochemical characteristics of BiOI/ZrO2 were studied through X-ray diffraction (XRD), field emission scanning electron microscopy (FE-SEM), transmission electron microscopy (TEM), BET-surface area, X-ray photoelectron spectroscopy (XPS), UV–vis diffuse reflectance spectroscopy (UV–vis-DRS) and photoluminescence (PL) spectroscopy techniques. The absorption maximum of ZrO2 was shifted to the visible region after sensitization with BiOI. BET-surface area results inferred that the prepared hetero-junctions were meso-porous in nature. The photocatalytic activity of BiOI-ZrO2 for the degradation of methyl violet (MV) dye under simulated solar light irradiation was investigated in detail. 3% BiOI-ZrO2 exhibited the highest photocatalytic performance (98% of MV degradation) when compared with ZrO2 and BiOI. The enhancement in the photocatalytic activity of BiOI-ZrO2 is ascribed to the sensitization effect of BiOI, suppression of electron–hole recombination and the formation of p-n hetero-junction.