A dual-wavelength fiber laser operating at the 1550 nm region using a side-polished arc-shaped fiber with deposited ZnO nanoparticles is proposed and demonstrated. The arc-polished fiber is fabricated by using a simple but novel approach in which a silicon carbide paper polishes one side of a conventional single-mode fiber. An arc-polished fiber with a length of 2.25 mm and an insertion loss of 0.95 dB is obtained and deposited with ZnO nanoparticles by the drop-cast method. A stable dual-wavelength output is obtained at 1562.5 and 1563.4 nm at peak powers of 9.3 and 10.1 dBm, respectively, as well as a signal-to-noise ratio of 28.4 dB and a channel spacing of 0.9 nm. Both lasing wavelengths also have narrow linewidths of between 0.045 and 0.049 nm and show little to no wavelength or power fluctuations over continued testing.