Thin　films　of　Cd1-xMgxO　(CdMgO)　(0　＜=　x　＜=　1)　were　investigated　by　depositing　the　films　on　glass　substrates　using　the　co-evaporation　technique.　The　structural,　surface　morphological,　optical,　and　electrical　characteristics　of　these　films　were　studied　as　a　function　of　Mg　content　after　annealing　at　350　degrees　C.　The　XRD　analysis　showed　that　the　deposited　films　had　an　amorphous　nature.　The　grain　size　of　the　films　reduced　as　the　Mg　concentration　increased,　as　evidenced　by　the　surface　morphology,　and　EDAX　supported　the　existence　of　Mg　content.　It　was　observed　that　as　the　films　were　annealed,　the　transmittance　of　the　CdMgO　films　saw　an　increase　of　up　to　85%.　The　blue　shift　of　the　absorption　edge　was　observed　by　the　increase　of　Mg　content,　which　was　useful　for　enhancing　the　efficiency　of　solar　cells.　The　optical　band　gap　increased　from　2.45　to　6.02　eV　as　the　Mg　content　increased.　With　increased　Mg　content,　the　refractive　index　reduced　from　2.49　to　1.735,　and　electrical　resistivity　increased　from　535　omega　cm　to　1.57　x　10(6)　omega　cm.