Cadmium telluride (CdTe) thin films were deposited onto scratch free transparent glass substrates by two-source evaporation technique, using Cd and Te as two different evaporants. In the next step films were heated under vacuum at 400 C for I h and dipped in AgNO3-H2O solution at room temperature. These films were again heated under vacuum for 1 h at 400 degrees C to obtain maximum Ag diffusion. The samples were characterized by X-ray diffraction (XRD), scanning electron microscope (SEM), electrically i.e. DC electrical resistivity by van der Pauw method at room temperature, dark conductivity, activation energy analysis as a function of temperature by two-probe method under vacuum and optically by Lambda 900 UV/VIS/NIR spectrophotometer. The EDX results showed an increase of Ag content in the samples by increasing immersion time of the CdTe films in the solution. (c) 2007 Elsevier Ltd. All rights reserved.