Cu doped ZnO (ZnCuO) is very important candidate for electronic applications, since it had been shown that it possessed p–type conductivity. In order to widespread its applications, it’s crucial to tune optical and electronic properties. In this study, by doping ZnCuO with Magnesium, variation of refractive index, extinction coefficient, and band gap of thin films were investigated. Optical constants were evaluated using a transmittance model which derived from Fresnel equations. Refractive indices of thin films were expressed as a dispersion relation in a polynomial form, while extinction coefficients were modelled as a convolution by Lorentzian curves. It was observed that Mg doping decreased the refractive index and also caused a blue shift in absorption edge which is a clear indicator of band gap widening.