This work aimed to use the waste zinc-dust from a hot-dip galvanizing plant for the synthesis of nanosized ZnO photocatalyst powder via hydrothermal treatment. ZnO particles with different morphologies and sizes were obtained by varying the solution pH (8–12) and the amount of hydroxypropyl cellulose (HPC) dispersant (0–0.15% (w/v)) under hydrothermal treatment at 170 °C for 8 h. The influence of the preparation conditions on the properties of resultant ZnO particles were evaluated by X-ray diffraction, scanning electron microscopy with energy dispersive X-ray analysis, laser light scattering and Brunauer–Emmett–Teller analyses. The solution pH affected the crystallinity, particle morphology and specific surface area of the obtained ZnO, which in turn influenced its photocatalytic activity. The addition of the optimum amount of HPC (0.1% (w/v)) in the starting solution acted as a dispersant to reduce ZnO particle agglomeration but had the opposite effect at higher levels. Moreover, ZnO nanorods with various aspect ratios and a diameter and length range of 20–70 nm and 100–400 nm, respectively, were obtained depending on the amount of added HPC. The photocatalytic activity of the synthesized ZnO powder was improved by the addition of the optimal amount of HPC, and correlated to the particle dispersion and specific surface area.