In this study, varying percentages of dysprosium (Dy) doped zinc oxide (ZnO) nanoparticles (NPs) were synthesized via a green chemistry approach employing the co-precipitation method. The effect of varying dopant concentrations was studied with the help of various structural, morphological, and optical studies. The elemental composition, structural, and morphological properties of the nanoparticles were comprehensively investigated using X-ray photoelectron spectroscopy (XPS), energy dispersive X-ray (EDX), X-ray diffraction (XRD), Fourier-transform infrared spectroscopy (FTIR), high-resolution transmission electron microscopy (HRTEM), and field emission scanning electron microscopy (FESEM). EDX confirmed the presence of zinc, oxygen, and dysprosium in the samples, while XPS analysis indicated the presence of Dy in the +3 oxidation state in all dysprosium-doped zinc oxide (Dy-ZnO) nanoparticles. The XRD analysis was done with the help of Rietveld refinement with χ2 value of 1.91 for 3% Dy-ZnO and 1.56 for 5% Dy-ZnO NPs and agglomerated flower-like morphology was observed in FESEM images. UV absorption studies displayed a red shift in the absorption maxima with increasing Dy3+ concentration, indicating improved light absorption capacity for enhanced photocatalytic activity. Remarkably, the decoloration efficiency for novacron brown reached 90% for Dy-ZnO NPs doped with 5% Dy. This research highlights the promising potential of Dy-ZnO NPs as efficient photocatalysts for environmental remediation applications, particularly in the decoloration of textile dyes.