Series of chitosan grafted zinc containing nanoclay polymer bio-composites (CZNCPBCs) with variable percentage (8%, 10% and 12%) of clay and nanoclay were synthesized by a novel method. Clays as well as CZNCPBCs were characterized through X-ray diffraction (XRD), Scanning electron microscopy (SEM), Transmission electron microscopy (TEM) and Fourier transform infrared spectroscopy (FTIR). Release study of Zn2+ from CZNCPBCs in Zn deficient soils revealed that combination having 12% nanoclay showed slowest release rate. Olsen-P content was found maximum in 8% clay containing composite. However, combination containing 8% clay recorded highest equilibrium water absorbency as well as moisture content at a particular tension. Inoculation with fungal species revealed that Aspergillus spp. was more effective as compared with Trichoderma spp. in evolution of cumulative CO2-C, indirectly indicating biodegradability. CZNCPBCs were found to be promising as controlled release (CR) Zn2+ fertilizer formulation.