The Zn0.98Nd0.02O was prepared by applying the solid phase reacting method, then Zn0.98Nd0.02O thin film was deposited on Si (111) substrate by radio frequency magnetron sputtering technique. Finally the microstructure of the Zn0.98Nd0.02O particle and film was investigated by X-ray diffraction, Atomic Force Microscopy (AFM) and Raman scattering. Volt-Ampere Properties of Zn0.98Nd0.02O film was tested at room temperature. It is found that lattice structure of the Zn0.98Nd0.02O, hexagonal wurtzite, is not disturbed by Nd-doping. Zn0.98Nd0.02O particles are nano-multi-crystal powder, and the film is nano-multi-crystal growing at (100), (101) orientation, which has rough surface morphology. The room temperature Raman spectrum analysis indicates that the Raman peaks have frequency spectrum displacement, because the local stress strengthened and the defect states become complicated. Through further analysis, the room temperature I-V curves of Zn0.98Nd0.02O thin film shows its nonlinear conductivity properties. Several reasons cause the nonlinear conductivity: the carriers in the Zn0.98Nd0.02O thin film are excited by extra electric field thermolly and enter into the conduction band; photos from the environmental light which have energy larger than the band gap of ZnO, aroused the photoconduction effect; and the tunnel between Nano-particles conducted in the film. Under the light irradiation, the consistence of shallow donor defects increases, and the Zn0.98Nd0.02O thin film surface resistivity decreases, so the conductivity increases.