Even though David Beckham missed a penalty, England looked to be heading for the perfect start in Group B as they led 1-0 in Lisbon at full time.
But Zidane fired in a free-kick and then scored from the penalty spot after keeper David James brought down Thierry Henry as he chased Steven Gerrard's poor back pass.
France's stunning victory means the holders are at the top Group B with three points, with England at the bottom with none.
But the England team seem determined to stay positive and players seem to be pleased with the way they played the match.
"It was a bit of a mugging and hard to take, but we move on to our next two games knowing we did ourselves proud apart from two minutes in injury time," said England striker Michael Owen.