In this paper, we have reported the synthesis of silver and Indium co-doped ZnO nanoparticles at low temperature by sol-gel method were found to have hexagonal structure. This method is simple and cost effective. The crystallite size, structure, elemental composition, surface morphology, UV absorbance and band gap, optical properties and functional group analysis were characterized by X-ray diffraction (XRD), Fourier transform Infrared Spectroscopy (FTIR), Ultra-visible spectroscopy (UV),Photoluminescence spectroscopy(PL) Scanning Electron Microscopy (SEM), Transmission Electron Microscopy(TEM), Energy Dispersive X–ray analysis (EDAX). XRD analysis reveals that all samples crystallizes in polycrystalline nature with hexagonal wurtzite and exhibit no other impurity phases. The variation in the intensities of the XRD lines is correlated with Ag and In incorporation in the ZnO lattice. From the XRD data, we have calculated dislocation density, crystallite size, lattice parameters, c/a ratio, ZnO bond length, volume of the unit cell and strain. FTIR spectroscopy was carried out to analyze the functional groups corresponding to the Zn-O bands in the samples. The prepared ZnO nano crystallite size lies in the range of (10-20nm). SEM analysis confirms that the nanoparticles sample show the formation of nanorods.TEM micrograph of the samples has been found to be spherical with irregular particle size distribution. Optical properties were studied by UV-Visible spectrophotometer. The energy gap is found to decrease from 3.28eV, 3.18eV and 3.06eV with increasing doping concentration.