Silver and Magnesium doped ZnO nanoparticles were synthesized via Sol-gel method followed by calcinations at 500, 600 and 700°C for 2h. The influences of calcinations temperature on the particle size, the structural and morphological studies were examined by X-ray diffraction (XRD), Scanning Electron Microscope (SEM). The Elemental analysis have been estimated by Energy Dispersive X-ray Absorption (EDAX), Chemical and optical properties were studied by Fourier transform infrared spectroscopy and UV-Vis absorption spectrum. The average particle size of the synthesized ZnO nanoparticles is calculated using the Scherer formula and was found to be less than 30 nm. These results also indicate that there was an improvement in the crystalline of ZnO nanoparticles with the increase in the calcinations temperature. It was suggested that these Ag-Mg co-doped ZnO nanoparticles have good applications in optoelectronics devices. As the process is simple and low cost, it has the potential to be produced on a large scale.