The structural and optical features of rare earth ions doped (Nd) ZnO nanocrystalline thin films, which were prepared by spray pyrolysis technique.The pure and RE doped ZnO thin films coated on Si (111) and glass substrates for various concentrations of Nd were characterized. These films were deposited on Si (111) and glass substrates at 400(0)C. The as prepared products were characterized by XRD,SEM with EDAX and PL. Nd doped ZnO samples consisted of compact granular structure with crystalline grains(SEM studies) having a preferential orientation along the c-axis (002) perpendicular to the substrate plane (XRD) was observed both Si and glass substrates. The (002) peak position shifts toward a higher angle with the increasing Nd doping level due to decrease in the lattice parameter.SEM studies show that while increasing doping concentration of Nd, the homogeneity of the film is affected. Photoluminescence (PL) indicate that above 5 at.% doping concentrations, the Nd atoms preferentially agglomerate in the large islands.