Visible-light-driven photocatalysis is one promising and efficient approach for decontaminating pollutants. Herein, we report the combination of localized surface plasmon resonance (LSPR) and p-n heterojunction structure Ag-Ag₂O-ZnO nanocomposite synthesized by a hydrothermal process for the suppression of photogenerated electron-hole pair recombination rates, the extension of the absorption edge to the visible region, and the enhancement of photocatalytic efficiency. The prepared nanocomposites were investigated by standard analytical techniques and the results revealed that the synthesized powders were comprised of Ag, Ag₂O, and ZnO phases. Photocatalytic activity of the photocatalyst tested for methylene blue, methyl orange, and rhodamine B showed the highest photocatalytic degradation efficiency: 97.3%, 91.1%, and 94.8% within 60 min under visible-light irradiation. The average lifetime of the photogenerated charge carriers was increased twofold in the Ag-Ag₂O-ZnO photocatalyst (~10 ns) compared to the pure ZnO (~5.2 ns). The enhanced photocatalytic activity resulted from a decrease of the charge carrier recombination rate as inferred from the steady-state and time-resolved photoluminescence investigations, and the increased photoabsorption ability. The Ag-Ag₂O-ZnO photocatalyst was stable over five repeated cyclic photodegradation tests without showing any significant changes in performance. Additionally, the structure indicated a potential for application in environmental remediation. The present study showcases the robust design of highly efficient and reusable visible-light-active photocatalysts via the combination of p-n heterojunction and LSPR phenomena.