Zinc oxide is an extensively studied semiconductor with a wide band gap in the near-UV. Its many interesting properties have found use in optics, electronics, catalysis, sensing, as well as biomedicine and microbiology. In the nanoscale regime the functional properties of ZnO can be precisely tuned by manipulating its size, shape, chemical composition (doping), and surface states. In this review, we focus on the colloidal synthesis of ZnO nanocrystals (NCs) and provide a critical analysis of the synthetic methods currently available for preparing ZnO colloids. First, we outline key thermodynamic considerations for the nucleation and growth of colloidal nanoparticles, including an analysis of different reaction methodologies and of the role of dopant ions on nanoparticle formation. We then comprehensively review and discuss the literature on ZnO NC systems, including reactions in polar solvents that traditionally occur at low temperatures upon addition of a base, and high temperature reactions in organic, nonpolar solvents. A specific section is dedicated to doped NCs, highlighting both synthetic aspects and structure-property relationships. The versatility of these methods to achieve morphological and compositional control in ZnO is explicated. We then showcase some of the key applications of ZnO NCs, both as suspended colloids and as deposited coatings on supporting substrates. Finally, a critical analysis of the current state of the art for ZnO colloidal NCs is presented along with existing challenges and future directions for the field.