Abstract <p>Dispersion of nanoparticles is widely acceptable method for augmenting spectroscopic properties and intrinsic compressibility of liquid crystals. In the present study zinc oxide nanoparticles were synthesized with custard apple leaves as reducing agent and dispersed in liquid crystal at various concentrations. Confirmation of size of particles as single crystal, the approximate size being 27.87 nm from X-ray spectra. These resulting zinc oxide nanoparticles (NP) were dispersed in different weight proportions to obtain liquid crystal nanocomposite (LCxNP) with <i>x</i> = 0.5, 0.75, and 1 wt %. Now the powdered LCxNP were characterized with suitable methods for extended spectroscopic properties viz optical and thermal properties. Observed parameters of experimental studies convinced significantly with reduced optical band gap, increased refractive index, dielectric constant due to delocalized states. Consequently, these delocalized states are responsible for dipole-induced dipole interactions resulting in increased molecular interactions responsible for crystallite size with unaltered texture and enthalpy allow the material as more efficient polarizable material. Formation of LCxNP is confirmed with changes in stretching and bending vibrations confirming formation bonding with increased absorption. It’s evident from the studies that higher concentration of nanoparticles has a significant impact on spectroscopic properties due to increased dipole-induced dipole interactions and occurrence of delocalized states that is crucial for the development of advanced liquid crystal-based devices with tailored properties.</p>