In this article, we report the fabrication of a stable Ag-ZnO-SnO2 nanochain by template free hydrothermal method and its photocatalytic activity for the first time. This composite material represents a potential new class of photocatalysts with enhanced light absorption, hydrophobic and electronic properties of ZnO. This catalyst has been characterized by X-ray diffraction (XRD), high resolution scanning electron microscopy (HRSEM), field emission scanning electron microscopy (FESEM), elemental mapping, energy dispersive spectroscopy (EDS), X-ray photoelectron spectroscopy (XPS), UV-Vis diffuse reflectance spectroscopy (DRS) and photoluminescence spectroscopy (PL). XRD and elemental mapping reveal the presence of SnO2 and Ag in the catalyst. Ag-ZnO-SnO2 has increased absorption in the visible region when compared to ZnO. This three component nano junction system exhibits enhanced photocatalytic activity for the degradation of azo dyes, Acid Black 1 (AB 1) and Acid Violet 7 (AV 7) under UV light (365 nm), far exceeding those of the single and two component systems. Ag-ZnO-SnO2 is found to be reusable without appreciable loss of catalytic activity up to four runs. Based on the band gap energies of ZnO and SnO2, a mechanism is proposed for the photodegradation of dyes. Hydrophobicity and photoconductivity of Ag-ZnO-SnO2 have been evaluated. Nanochain exhibiting higher positive photoconductivity can be useful for soliton wave communication as well as solar cell applications. Our results provide some new insights on the fabrication of Ag-ZnO-SnO2 and its performance as an active photocatalyst, self cleaning and conducting material.