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Currently, the global agriculture productivity is heavily relied on the use of chemical fertilizers. However, the low nutrient utilization efficiency (NUE) is the main obstacle for attaining higher crop productivity and reducing nutrients losses from these fertilizers to the environment. Coating fertilizer with micronutrients and biopolymer can offer an opportunity to overcome these fertilizers associated problems. Here, we coated urea with zinc sulphate (ZnS) and ZnS plus molasses (ZnSM) to control its N release, decrease the ammonia (NH3) volatilization and improve N utilization efficiency by sunflower. Morphological analysis confirmed a uniform coating layer formation of both formulations on urea granules. A slow release of N from ZnS and ZnSM was observed in water. After soil application, ZnSM decreased the NH3 emission by 38% compared to uncoated urea. Most of the soil parameters did not differ between ZnS and uncoated urea treatment. Microbial biomass N and Zn in ZnSM were 125 and 107% higher than uncoated urea, respectively. Soil mineral N in ZnSM was 21% higher than uncoated urea. Such controlled nutrient availability in the soil resulted in higher sunflower grain yield (53%), N (80%) and Zn (126%) uptakes from ZnSM than uncoated fertilizer. Hence, coating biopolymer with Zn on urea did not only increase the sunflower yield and N utilization efficiency but also meet the micronutrient Zn demand of sunflower. Therefore, coating urea with Zn plus biopolymer is recommended to fertilizer production companies for improving NUE, crop yield and reducing urea N losses to the environment in addition to fulfil crop micronutrient demand.