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Background: Dandruff caused by Malassezia furfur is a prevailing fungal infection. Although ketoconazole (KTZ) is widely intended for anti-dandruff treatment, poor solubility, and epidermal permeability limits its use and the marketed KTZ shampoo adversely effects scalp and hair., Objective: To prepare a novel shampoo loaded with KTZ-coated zinc oxide nanoparticles using green tea extract and evaluate its antifungal activity., Methods: The KTZ-coated zinc oxide nanoparticles was prepared by green synthesis and was characterized by UV, FTIR, XRD, and the drug entrapment efficiency was investigated. The antifungal activity of the nanoparticles with respect to standard drug, KTZ was tested against Malassezia furfur. Further, a novel antidandruff shampoo was developed by incorporating the prepared nanoparticles into the shampoo base., Results: The formation of KTZ-coated ZnO nanoparticles was confirmed by UV and FTIR analysis. XRD analysis confirmed the amorphous phase of KTZ in nanoparticles. The drug entrapment efficiency was found to be 91.84%. The prepared nanoparticles showed enhanced activity against Malassezia furfur compared to drug of choice, KTZ (1%). The evaluation of shampoo showed an ideal result., Conclusion: KTZ-coated ZnO nanoparticles loaded novel shampoo in comparison to marketed anti-dandruff shampoo could be an effective alternate for the treatment of dandruff., (© 2023 The Authors. Journal of Cosmetic Dermatology published by Wiley Periodicals LLC.)