Nonwoven fabrics (NW) are used in many medical, industrial, and automotive applications; however, their functionalization to enhance their properties has become important. In this study, a polymeric matrix (denoted as PVB/PPG/ZnO) comprised of polyvinyl butyral solution (PVB), polypropylene glycol (PPG), 3-glycidyloxypropyltrimethoxysilane (C), and zinc oxide nanoparticles (ZnO NPs) was utilized to improve the mechanical, thermal, and antibacterial properties of NW. The binder, plasticizer, coupling agent, and filler used in the polymeric matrix were PVB, PPG, C, and ZnO, respectively. ZnO NPs were added with the following concentration to PVB: 0.5%, 1.0%, 1.5%, and 3.0%. The physical and thermal properties of treated NW samples were evaluated by Fourier transform infrared spectroscopy (FTIR), scanning electron microscopy (SEM), X-ray diffraction (XRD), thermogravimetric analysis (TGA), and mechanical tests. Additionally, bacterial inhibition against gram-positive (Staphylococcus aureus) and gram-negative (Escherichia coli) microorganisms was examined for various ZnO NP ratios. TGA indicated that using concentrations of 1.5% and 3% ZnO NPs increased the thermal stability of the treated solution in comparison with other concentrations. In this work, ZnO NPs have demonstrated great promise as an antimicrobial agent, and when used at a 3% concentration ratio, they significantly improve the antibacterial properties of NW against both bacterial species compared to other concentrations. This study aims to introduce a technical view for the NW industry using PVB as a recyclable and sustainable binder which can be reused and recycled after NW life cycle.