Lead zirconate titanate (PZT) is a widely studied ferroelectric material known for its excellent piezoelectric properties. Despite extensive exploration of its electrical characteristics, the optical behavior, specifically bandgap estimation, has received relatively less attention. In this work, PZT powders were synthesized using the sol–gel method and subjected to varying annealing conditions to study their optical properties. The optical bandgap was determined using UV–visible diffuse reflectance spectroscopy, and analyzed through the Tauc plot method. However, the conventional approach of linear extrapolation in the Tauc plot poses limitations due to uncertainties in the nature of electronic transitions, structural disorder, compositional variations, and the presence of Urbach tails. This study emphasizes the necessity for more rigorous and objective analytical methods to accurately determine the optical bandgap in complex oxide systems like PZT.