Te-doped CdO thin-films (1%, 3%, and 5%) have been prepared by a vacuum evaporation method on glass and silicon-wafer substrates. The prepared films were characterised by X-ray fluorescence, X-ray diffraction, UV-VIS-NIR absorption spectroscopy, and dc-electrical measurements. Experimental data indicate that Te ions doping slightly stresses the host CdO crystalline structure and changes the optical and electrical properties. The bandgap of the host CdO was suddenly narrowed by about 23% due to a little (1%) doping with Te ions. This bandgap shrinkage was explained by effects of trap levels overlapping with conduction band. The electrical behaviours of the Te-doped CdO films show that they are degenerate semiconductors with a bandgap of 1.7-2.2 eV. The 1% Te-doped CdO film shows increase its mobility by about 5 times, conductivity by similar to 140 times, and carrier concentration by similar to 27 times, relative to undoped CdO film. From transparent-conducting-oxide point of view, Te is sufficiently effective for CdO doping. Finally, the absorption in the NIR spectral region was studied in the framework of the classical Drude theory. (C) 2010 Elsevier Ltd. All rights reserved.