In this work we have tried to prepare Ni and Ag doped ZnO nanopowders using the sol gel technique. The influence of Ni and Ag (1, 3 and 5 mol.%) on the crystalline structure and optical properties of ZnO was investigated. The samples were characterized by XRD, FTIR and UV–visible spectrophotometer. XRD patterns confirmed the wurtzite formation of doped and undoped ZnO nanopowders. The average crystallite sizes of the prepared samples found from XRD were 19 nm for undoped ZnO, from 17 to 22 nm for Ni-ZnO and from 19 to 26 nm for Ag-ZnO. The average crystallite size of Ag-ZnO increased with increasing Ag contents. Different optical properties of Ni-ZnO and Ag-ZnO nanopowders were observed for different Ni and Ag content. The band gaps of Ni-ZnO and Ag-ZnO nanopowders were lower than that of the undoped ZnO (3.1 eV). The band gaps of Ag-ZnO were lower than that of Ni-ZnO. The optical properties of ZnO were enhanced by Ni (mol.%) in the UV region and by Ag (3 and 5 mol.%) in the visible region.