Ce-doped ZnO nanoparticles with various doping concentrations of cerium ion were prepared by the co-precipitation method. All prepared nanoparticles were characterized by electron spin resonance (ESR), energy-dispersive X-ray spectroscopy (EDX), X-ray diffraction (XRD) and UV-Vis diffuse reflectance spectroscopy. All nanoparticles show X-ray diffraction pattern that matched with ZnO in its wurzite structure and average grain size was in the range of 13 -16 nm. UV-Vis measurements indicated a red shift of the photophysical response of ZnO after doping that was exhibited in reflection spectra in the visible region between 300 -800 nm. In addition, it has been found from electron spin resonance measurements that defects, which are likely to be oxygen vacancy and an electron trapped at cerium site are formed in our Ce-doped ZnO particles. Photocatalytic activities of Ce-doped ZnO were evaluated by irradiating the nanoparticles solution to ultraviolet light by taking methyl orange as organic dye. The experiment demonstrated that the photodegradation increased as doping concentrations increased at first and then decreased when the doping concentration exceeded 9 at%. It is proposed that the photocatalytic activity is strongly dependent on the formation of oxygen vacancy and an electron trapped at cerium site.