Fe and Co co-doped ZnO nanoparticles were synthesized by hydrothermal method. Limit of substitution was identified using XRD. Magnetic measurements at room temperature for doped samples showed paramagnetic and ferromagnetic in nature. The reflectance spectra exhibited the absorption peaks corresponding to both dopant and host ions. Emission spectra show defect related peaks, suppression of visible spectra peaks is observed in doped samples. Zinc oxide (ZnO) exhibits many interesting properties. It is an intrinsic n-type II-VI semiconductor with a direct dipole allowed band gap of 3.37 eV at room temperature and a large exciton binding energy of 60 meV. In diluted magnetic semiconductors (DMS), a fraction of the host cations can be replaced by a transition metal or rare earth ions [[]. Dietl et al. reported ferromagnetism at room temperatue (RT-FM) for diluted magnetic semiconducting compounds, such as 3d ions M 2 +-substituted zinc oxide [2]. This class of materials is potentially interesting for spintronic devices, such as spin valves, magnetic sensors, spin light-emitting diodes, and non volatile memory [3]. Intrinsic Co-doped ZnO should be paramagnetic but room temperature ferromagnetism (RTFM) is possible with further modifications, in terms of creating a n type environment (eg. Via oxygen vacancies or Zn interstitials) which produces room temperature ferromagnetism [4]. Coand Cu -codoped ZnO of either bulk samples or thin films appears to have paramagnetic behavior. It needs to be clarified whether the magnetic behavior is an intrinsic property or due to the presence of secondary magnetic clusters or both [5]. An intrinsic origin of the ferromagnetism in these oxide-based DMSs is still under debate. Besides the mechanism like carrier induced, double-exchange, depending on the conductivity and levels in the materials new exchange mechanism involving donor electrons in an impurity level plays an important role on setting ferromagnetism in these DMSs. ZnO has been considered as one of the promising candidates for fabricating DMSs due to its high solubility for transition metals (TM) and superior semiconductor properties [6]. [n the present work, effect of Fe and Co substitution on magnetic and optical properties of the ZnO nanoparticles synthesized by hydrothermal method was studied. II. EXPERIMENTAL Pure and co-doped ZnO nanoparticles were synthesized by hydrothermal method. Zinc nitrate tetrahydrate (Zn (N03)2.6H20), ferric nitrate nonahydrate (Fe(N03)2.9H20), cobalt nitrate tetrahydrate (Co(N03h6H20) and potassium hydroxide (KOH) were used as precursors. Stoichometric ratios of precursors of 1M were dissolved in double distilled water using a magnetic stirrer. The total doping concentration was fixed to 12 mol %, with varying percentages of iron and cobalt. [M KOH was added drop wise to raise the pH to [2. After stirring for 3 h continuously, the solution was transferred to an autoclave. The temperature was set to 90°C for [2 h under autogenous pressure and was allowed to reach room temperature. The final pr...