With the purpose of enhancing the stability, optical behaviour, electronic properties and photocatalytic activity for hydrogen production under visible light, ZnO has been modified by In₂O₃. The thriving modification of ZnO by In₂O₃ was confirmed from X-ray diffraction, DRUV-vis spectra, X-ray photoelectron spectroscopy, transmission electron microscopy, photoluminescence spectroscopy and photoelectrochemical measurement. DRUV-vis spectra showed that the optical absorption of ZnO was significantly enhanced to the visible region by modification with In₂O₃. TEM study confirmed that the particle size of ZnO was drastically reduced by the modification with In₂O₃ which helped to retard the recombination of charge carriers and enhanced the photocatalytic activity. Moreover, In₂O₃ modification greatly enhanced the stability of ZnO in aqueous medium which is a really challenging task in the photocatalytic chemistry of ZnO. All the In₂O₃ modified ZnO samples showed high photocatalytic activity for hydrogen production under visible light.