Zirconium Oxide (zirconia) particles were prepared through hydrothermal technique by using zirconium oxychloride (ZrOCl2.8H2O) and zirconyl nitrate (ZrO (NO3)2.H2O) as precursors. The structural characterization as prepared samples were confirmed by X-ray powder diffraction (XRD) and showed monoclinic phase. Further, surface morphology of synthesized zirconia particles were confirmed by scanning electron microscopy (SEM). The energy band gap of synthesized samples was evaluated from UV-vis absorption spectra. The frequency dependence of dielectric constant and dielectric loss of the samples were investigated at room temperature. Zirconium oxychloride was found to be better precursor for obtaining ZrO2 with a higher dielectric constant than Zirconyl nitrate under the same synthesis conditions.