This work describes the thermoluminescence (TL) and photoluminescence (PL) of zirconium oxide (ZrO2) nanoparticles synthesized using the propellant chemical combustion method. They were characterized by X-ray diffraction (XRD) and scanning electron microscope (SEM). The XRD result shows a nanocrystalline material with a major tetragonal phase along with a small portion of monoclinic phase, while SEM images display particles of spherical shapes of diameters in the 25–35nm range. Samples from this powder were exposed to different doses of γ-rays from a 137Cs source in the range of 0.01Gy–1kGy. The induced TL glow curve has a single broad peak at around 600K. TL response curve of this peak shows sublinearity for all the recorded doses, while its fading over two months is negligible. The intensity and structure of the TL glow curve did not change after several cycles of exposures and readout. PL excitation and emission spectra were also recorded and are investigated. When the material was excited by different wavelengths, several emission bands are observed in the range of 300–500nm. The new nanocrystalline material shows excellent characterization such as good TL sensitivity, low fading and reusability making it a promising TL dosimeter.