ZnO nanoparticles (NPs) were prepared by hydrothermal treatment with starting materials (zinc chloride and urea) in the presence of ammonium hydroxide and characterized by powder X-ray diffraction (XRD), field emission scanning electron microscopy (FESEM), Fourier transform infrared spectroscopy (FTIR), Raman spectroscopy and UV-vis spectroscopy. The synthesized nanoparticles are crystalline with wurtzite hexagonal phase having average particle size in the range of 80-130 nm. Photocatalytic activity of the prepared ZnO NPs was evaluated by the degradation of methylene blue and almost complete degradation (91.0%) takes place within 85 min of irradiation time. Prepared ZnO nanostructures possessed high photocatalytic activity when compared with TiO2-UV100. Additionally, the sensing properties of the ZnO films were investigated for various concentrations of methanol in liquid phase by simple I-V technique at room conditions. It was observed that ZnO thin film exhibits good sensitivity (0.9554 mu Acm(-2)mM(-1)) towards detection of methanol at room conditions. (C) 2012 Elsevier B.V. All rights reserved.