Electrodeposition is emerging as a method for the synthesis of semiconductor thin films and nanostructures. In this work we prepared the nanocrystalline CdTe thin films on indium tin oxide coated glass substrate from aqueous acidic bath at the deposition temperature 50 +/-1 degrees C. The films were grown potentiostatically from -0.60 V to -0.82 V with respect to saturated calomel reference electrode. The structural, compositional, morphological and optical properties were investigated using X-ray diffraction (XRD), energy dispersive analysis by X-rays (EDAX), atomic force microscopy (AFM), and UV-vis spectroscopy respectively and cyclic voltammetery. The structural and optical studies revealed that films are nanocrystalline in nature and possess cubic phase, also the films are preferentially oriented along the cubic (111) plane. The effect of cadmium composition on the deposited morphology was also investigated. The size dependent blue shift in the experimentally determined absorption edge has been compared with the theoretical predictions based on the effective mass approximation and tight binding approximation. It is shown that the experimentally determined absorption edges depart from the theoretically calculated values. (C) 2009 Elsevier B.V. All rights reserved.