Highly visible light active 1% and 3% Ag@ZnO nanocomposites were synthesized via a gel combustion route using citric acid as a fuel. The formation of the nanocomposites with enhanced properties was confirmed using a range of characterization techniques, photocatalysis and photoelectrochemical studies. Compared to the pristine ZnO nanoparticles, the Ag@ZnO nanocomposites exhibited enhanced visible light photocatalytic activity for the degradation of methylene blue and photoelectrochemical response. A mechanism was proposed to account for the photocatalytic activities of the Ag@ZnO nanocomposite that showed the surface plasmon resonance (SPR) of Ag is an effective way of enhancing the visible light photocatalytic activities.