The experimentally observed effects induced by ion irradiation in AZO thin films are discussed in limited articles. Here, in the present study, we report the results of ion irradiation by 300 keV Nitrogen ions. To study the structural, morphological, and optical properties of thin film, XRD, FE-SEM, and UV visible spectroscopy were used and it was confirmed by the structural investigation that the ion irradiation resulted in changes in different calculated structural parameters. Furthermore, different dopant concentrations are examined in relation to the effects of irradiation. The polar crystal growth orientation mechanism is initiated over nonpolar crystal growth orientation, as the 2%AZO thin films are presented to ion beam irradiation. The transition in the stress of thin film after N ion irradiation is also discussed. The phenomena responsible for the morphological changes is discussed. The observed morphological changes are correlated with structural changes. The change in the colour of the thin films after irradiation is explained. The other alterations in the thin films’ optical properties are also discussed. The systematics study of the irradiated thin films may be helpful for device fabrication.