Cadmium oxide nanoparticles (NPs) were successfully synthesized through the simple and low-cost sol–gel method. The optical, morphological, compositional, and structural properties of as-synthesized NPs were investigated by ultraviolet–visible (UV/Vis) spectroscopy, fluorescence spectroscopy, scanning electron microscopy (SEM), energy-dispersive X-ray analysis (EDX), Fourier transform infrared spectroscopy (FTIR), and X-ray diffraction (XRD) analysis. Absorption spectra of CdO NPs were used for band gaps calculation, which was found to be 2.11 eV. The XRD pattern was used to investigate the purity and crystalline nature of NPs. Morphology and elemental composition were investigated by using SEM and energy-dispersive X-ray spectroscopy (EDX), respectively. FTIR assisted in identifying the functional groups and grafting of the dye on the surface of NPs. These CdO nanoparticles were photosensitized with Ru (II) based Z907 dye. Z907 dye was employed to extend the absorption spectrum of the material to the visible region of the solar spectrum so as to harvest the maximum amount of solar influx on the surface of earth. The energy level diagram revealed that the interaction among the constituents of the nanohybrid assembly permitted the flow of the electron in a cascade manner from dye to CdO nanoparticles. The synthesized photoactive nanohybrid material was thoroughly blended with poly (3-hexylthiophene), a solid electrolyte, and I–V measurements under simulated radiations 1000 W/m2 (AM 1.5) were recorded. A maximum induced photon to the current conversion efficiency of 0.60% was achieved.