Zn 1− y Cd y O ternary alloyed thin films with different Cd volume ratios (y= 0.01 to 0.35) were successfully deposited by sol–gel spin coating method on p–Si (100) and quartz glass substrates. XRD results revealed that the thin films were polycrystalline in nature and their crystallinity was reduced with Cd content. Phase segregation as cubic CdO was observed for Cd content y≥ 0.15. Residual stress in the films was strongly influenced by Cd concentrations and its maximum value was observed near the phase segregation limit. Raman results also confirmed that the higher Cd contents distorted the wurtzite structure. UV–Vis transmission spectra exhibited reduction in bandgap of ZnCdO films with increase of Cd incorporation. The photoluminescence spectra showed near band edge emission in the blue region at lower Cd contents (y= 0.12). This emission splits into UV and green–yellow emissions for y≥ 0.15. The Hall measurements were performed to estimate the carrier concentration and mobility as a function of Cd doping.