ZnO-Eu2O3　nanocomposite　was　fabricated　by　a　simple　hydrothermal　route.　This　material　forms　a　potential　class　of　photocatalysts　in　which　the　increased　absorption　behaviour　in　ZnO-Eu2O3　is　expected　to　couple　with　the　existing　characteristics　of　Eu2O3　and　ZnO　materials.　ZnO-Eu2O3　was　characterized　using　surface　analytical　(SEM,　EDS,　HR-TEM,　AFM,　XRD)　and　spectroscopic　techniques　(XPS,　DRS,PL).　From　the　XRD　patterns,　formation　of　well-crystallized　cubic　Eu2O3　and　hexagonal　wurtzite　phase　of　ZnO　were　inferred.　Presence　of　nanoflake　like　structure　with　hexagonal　ZnO　and　cubical　Eu2O3　is　shown　by　SEM　pictures.　ZnO-Eu2O3　possesses　higher　UV　and　visible　absorption　than　Eu2O3　and　ZnO.　ZnO-Eu2O3　produces　larger　methanol　oxidation　current　indicating　its　anodic　catalytic　efficiency　in　direct　methanol　fuel　cells　(DMFCs).　This　reveals　higher　electrocatalytic　activity　of　ZnO-Eu2O3　than　ZnO.　It　is　observed　that　at　-1.6　V,　cathodic　current　density　(ipc)　of　ZnO-Eu2O3　(-103.17　mA　cm(-2))　for　Hydrogen　evolution　reaction　(HER)　is　more　than　five　times　of　ZnO　(-18.19　mA　cm(-2))　and　the　hydrogen　evolved　with　ZnO-Eu2O3　is　15.6　mL,　which　is　higher　than　that　of　ZnO　(6.8　mL).　This　indicates　the　superior　catalytic　property　of　ZnO-Eu2O3　in　water　splitting.　This　catalyst　exhibited　higher　catalytic　activity　of　99.2%　in　the　photodegradation　of　Rhodamine　B　(Rh-B)　with　natural　sunlight　in　75　min　under　neutral　pH,　whereas　Eu2O3　and　ZnO　produced　60　and　82%　degradations　in　the　same　time.　Degradation　quantum　efficiency　by　ZnO-Eu2O3　is　larger　than　ZnO　and　Eu2O3.　ZnO-Eu2O3　was　stable　and　reusable.　The　multifunctionality　of　this　catalyst　makes　it　suitable　for　energy　and　environmental　applications.