The study investigates the effect of in-situ substrate temperature and argon-oxygen ambient gas pressure of pulsed laser deposition facility on material composition, optical quality and magnetic response of ZnO:Mn thin films. Structural and optical analyses revealed the existence of an optimal in-situ substrate temperature (450 degrees C) at which thin films showed relatively better texture and optical quality with minimum concentration of structural defects. The detailed analysis of Zn 2p(3/2) and O 1s core level XPS spectra revealed that the structural disorder was considerably reduced in thin films after being annealed (in-situ) at substrate temperature of 450 degrees C. Magnetic measurements revealed the stronger p-d hybridization between oxygen 2p and Mn 3d orbitals in ZnO:Mn thin films being annealed in-situ at 450 degrees C under Ar:O-2 admixture of 2.5 mbar subsequently leading to improved ferromagnetic response. (C) 2016 Elsevier B.V. All rights reserved.