Present investigation reports the structural, optical and magnetic properties of co-doping of Co and N ions in ZnO samples, prepared by two distinct methods. In the first method, samples are synthesized by Sol-gel technique in which the Co and N are co-doped simultaneously during the growth process itself. In the second case, N ions are implanted in the Co doped ZnO thin films grown by Pulsed Laser Deposition (PLD). Structural studies showed that the nitrogen implantation on Co doped ZnO samples developed compressive stress in the films. X-ray photoelectron spectroscopy confirmed the doping of Co and N in ZnO matrix. In the Resonant Raman scattering multiple LO phonons up to fifth order are observed in the (Co, N) co-doped ZnO. Photoluminescence spectra showed that there is reduction in the bandgap due to the presence of Co in the lattice and also the presence of Zn vacancies in the films. All samples showed ferromagnetic behavior at room temperature. The magnetic moment observed in the implanted films is found to be varied with the different dosages of the implanted N ions. First principle calculations have been carried out to study the possible magnetic interaction in the co-doped system. Present study shows that the ferromagnetic interaction is due to the hybridization between N 2p and Co 3d states in the (Co, N) co-doped ZnO and is very sensitive to the geometrical configurations of dopants and the vacancy in the ZnO host lattice. (C) 2013 Elsevier B.V. All rights reserved.