A comprehensive study is envisioned to examine the influence of a rare-earth (RE) metal doping on the zinc oxide (ZnO) matrix. A wet chemical methodology was adopted to synthesize pristine and neodymium-doped (Nd-doped) ZnO nanoparticles (NPs). Crystal structure analysis substantiates that RE doping does not form any secondary phases related to RE metal clusters or oxides. Average crystallite and apparent strain values of the synthesized NPs were obtained from the size-strain plot approach. In addition to the typical absorption edge of ZnO, the characteristic absorption bands of Nd3+ ions are also detected in the doped ZnO NPs. Light emission studies revealed the photoluminescence quenching for up to 3 wt.% of Nd doping and a 5% doping causes an enhanced ultraviolet (UV) emission in the Nd-doped ZnO matrix. Additional functional groups that co-existed with the NPs were identified using Fourier Transform Infrared (FTIR) spectroscopy. The Energy dispersive X-ray (EDX) studies corroborate the existence of constituent elements in the doped ZnO matrix.