Well crystalline Co-Bi codoped ZnO nanostructures with various concentration of Bi were synthesized by simple chemical precipitation technique with metal nitrate precursors. The structural and magnetic properties of the samples calcined at 300°C for 6 h has been studied comprehensively. X-ray diffraction patterns (XRD) of the pure and Co-with Bi doped sample show strong crystalline diffraction peaks which belong to the characteristic wurtzite ZnO crystal structure. Aggregated nano particles have emerged with flower like morphology and it can be seen from the Scanning Electron Microscopy and Transmission Electron Microscopy. The average particle diameter is estimated and found to be 25-35 nm. Tunable optical band gap related to the additional electron state created by dopant was observed from the UV-Visible spectra. Typical PL emission in the UV, visible and continuous deep level emission demonstrate the potential application of the material in optoelectronics. Excellent ferromagnetic features of the material at room temperature reveal the additional carrier induced exchange interaction that makes the ferromagnetism in co-doped ZnO nanostructure.