The development of transparent conducting oxide materials has gained an increased interest in the scientific community for developing efficient low cost optoelectronic devices. The effect of Cd precursor on structural and optical properties of sol-gel synthesized Zn0.9Cd0.1O nanostructured films has been studied by using XRD, AFM, optical absorption and emission spectroscopic techniques. X-ray diffraction confirms the hexagonal wurtzite crystal structure of the deposited films and the relative intensity of diffraction peaks has been observed with different cadmium salts. The granular surface morphology of the synthesized films has been observed from AFM measurements. The optical transmission, band gap and luminescence intensity was found to change for different cadmium salts. These results are very important for developing new materials for optoelectronic applications.