The synthesis of binary (ZnO)0.4 (CdO)0.6 nanoparticles was achieved using a novel thermal treatment method. The structural, morphological, elemental composition and optical behaviour of these nanoparticles were determined using various techniques. X-ray diffraction of the sample at a calcination temperature above 500 °C showed the presence of both hexagonal and face-centred cubic crystalline structures. With increasing calcination temperature, the dispersion of the nanoparticles was improved, and the mean particle size determined by TEM micrographs suggested a corresponding increasing trend. Increased particle size led to a rise in the photoluminescent intensity as demonstrated by photoluminescence spectra, and multiple energy band gaps which lessen with increasing calcination temperature. The resulting (ZnO)0.4 (CdO)0.6 nanoparticles are likely to have widespread uses within numerous semiconductor applications.