Nanoparticles of ZnO and Zn1-xMnxO were synthesized by pulsed laser ablation in liquid medium (PLAL). Metal zinc target was used for preparing of pure ZnO nanostructures and Zn1-xMnxO ceramic plates served for preparing of ternary nanoparticles. As synthesized nanomaterials are characterized using scanning electron microscopy (SEM), energy dispersive spectroscopy analysis (EDS), atomic force microscopy (AFM), UV-vis absorption, photoluminescence and Faraday rotation spectroscopy. SEM images showed a well-defined flower-like nanostructures. Absorption edge of Zn0.95Mn0.05O nanoparticles in colloid solution exhibits blue shift due to confinement effect. The observed photoluminescence peaks are attributed to the band-edge transitions and vacancies or defects. The Faraday rotation as a function of photon energy demonstrates behavior typical for diluted magnetic semiconductors (DMSs) in paramagnetic state. (C) 2013 Elsevier B.V. All rights reserved.