Pure ZnO and Zn0.98Co0.02O samples have been synthesized by co-precipitation method. Structural and morphological properties were studied using XRD and TEM analysis. Co-doped ZnO sample has novel one-dimensional nano-ampoule morphology. Optical properties have been examined using UV–vis absorption spectra. The absorption edge is blue shifted with Co-doping concentration in ZnO lattice structure.