We report the fabrication and characterization of freestanding graphene coated ZnO nanowires (GZNs) for optical waveguiding. The GZNs are fabricated using a tape-assist transfer under micromanipulation. Owing to the deep-subwavelength diameter and high index contrast of the ZnO nanowire waveguide, light-graphene interaction is significantly enhanced by the strong surface optical fields, resulting in a linear absorption as high as 0.11 dB/µm in a 606-nm-diameter GZN at 1550-nm wavelength. Launched by 1550-nm-wavelength femto-second pulses, a 475-nm-diameter GZN with a graphene coating length of merely 24 µm exhibits evident nonlinear saturable absorption with a peak power threshold down to 1.3 W. In addition, we also demonstrate a transmission modulation for 1550-nm-wavelength signal with a 590-nm-diameter GZN, showing the possibility of using GZN waveguides as nanoscale bulding blocks for nanophotonic devices.