The effect of laser fluence and nature of ambient environments on the sputtering yield, surface modifications, crater depth, UV-visible absorption spectra, chemical composition, and micro hardness of Zr has been investigated. Nd: YAG laser (532 nm, 10 Hz, 6 ns) at different fluences varying from 16 to 60.8 Jcm−2 was employed as an irradiation source. All measurements are performed under two ambient environments of Ar and O2 at a constant pressure of 10 Torr. Quartz crystal microbalance has been employed for the measurement of sputtering yield of laser irradiated Zr. It is revealed that sputtering yield increases monotonically with increasing fluence under both environments however, it is higher in Ar as compared to O2 environment. Scanning electron microscope (SEM) has been used to explore the surface morphology. SEM analysis exhibits the formation of cones, ridges, and cracks at the central ablated areas whereas, laser-induced periodic surface structures, periodic ridges and sharp cones are observed at inner boundaries in both environments of Ar and O2. Sharp spikes are observed in both environments, however, their height and distinctness are more pronounced in Ar as compared to O2. Cones are characteristic features in Ar, whereas, cavities and channels are dominant features in O2 environment at outer boundaries. The formation and growth of surface structures are dependent upon laser fluence and ambient gas nature. The depth profilometry has been used to measure the crater depth of irradiated Zr target by using an optical microscope. UV visible spectroscopy and energy-dispersive X-ray analyses reveal the oxide formation in the case of Zr irradiation in O2 environment. The Vicker Micro-hardness tester has been employed to measure the hardness. The higher observed values of sputtering yield, crater depth and hardness of laser ablated Zr in Ar as compared to O2 are well correlated with distinct surface structures.