Abstract AZO (Al:ZnO) nanostructured thin film was prepared by a dip coating technique. An improved sol–gel method was used for the preparation of stable AZO sol with 2at% Al dopant concentration. Optical properties of AZO thin film have been studied by UV–visible absorption and photoluminescence spectroscopy. Scanning electron microscopy and X-ray diffraction pattern were performed to study the grain size and morphology of AZO thin films. Experimental observations confirmed that the deposited AZO thin film has potential for dual narrow emission in the blue and green regions. Transmission spectrum shows that the prepared thin film is able to transmit above 95% of the light in the visible region. The prepared thin film resistivity is also very low (5.0Ωcm).