Undoped and Lithium doped ZnO nanocrystalline thin films were grown by radio frequency magnetron sputtering. The effects of Li incorporation on the structural, morphological and optical properties of ZnO thin films were investigated. XRD and FESEM measurements confirmed the nanocrystalline nature of the films. XPS studies affirmed the presence of Li in ZnO films. The optical band gap of LZO films increased with Li doping. Room temperature PL spectra of films showed multiple emission peaks in the visible range indicating the creation of various defect states and it is proposed that white light emission is possible in LZO based materials by controlling the doping.