Lithium-doped zinc oxide films were synthesized by spray pyrolysis technique, and their structural and optical properties were characterized by X-ray diffraction, transmission electron microscope, atomic force microscope, and photoluminescence spectroscopy. The effect of doping on the photoluminescence properties was investigated at room temperature (300 K). Polycrystalline nature of the films was confirmed from X-ray diffraction and electron microscopic studies. A two-dimensional fringe moiré pattern with spacing of 1.2 nm was observed for the doped thin film. Lithium doping has been found to increase the roughness of the surface, thus making the film more passivated. Lithium was found to play a key role in the excitonic as well as visible luminescence of ZnO.