Polymer nanocomposites, prepared by incorporating functional nanoparticles (NPs) into a polymer matrix, have advantages of utilizing functionalities of polymers and NPs. Among them, transparent high-refractive-index polymer nanocomposites (THPNs), prepared by incorporating highly refractive NPs into polymer matrices, are advantageous for effectively manipulating light. This review focuses on the introduction of fabrication of THPN prepared by incorporating inorganic-oxide NPs, especially zirconia (ZrO 2 ), and its characteristics as an optical material. ZrO 2 NPs have a high refractive index and high transmittance in visible light regions with high and narrow optical bandgap energy. Since ZrO 2 NPs are harmless to humans and physically and chemically stable, they are suitable for applications of advanced optical materials for display and energy devices. Various fabrication methods of THPN with ZrO 2 NPs and surface modifications of ZrO 2 NPs to prevent agglomeration are introduced. Principles and specific applications, which THPN could work with and for, are introduced as well.