This work focuses on the improvement of certain physical properties of cadmium oxide (CdO) thin films via gold–silver (Au–Ag) nanocluster codoping. X-ray diffraction (XRD) analyses indicate that CdO thin films have cubic structures with a (1 1 1) preferential orientation. Interestingly, the diffraction patterns sharpen as the doping concentrations increase. The texture coefficient, crystallite size, and lattice constants were also determined. Scanning electron microscopy (SEM) images demonstrate that the surface morphology of the samples was affected by the incorporation of the Au–Ag-nanoclusters. In fact, the morphological features revealed that the samples contained nanosized grains that increased in size with an increasing Au–Ag nanocluster concentration. The optical transmission spectra revealed a shift in the absorption edge toward lower wavelengths (i.e., higher energies). The effect of the doping concentration on the band gap energy (Eg) and Urbach energy (Eu) are also highlighted in the study. It was observed from obtained findings that Au–Ag-nanoclusters doping had a crucial influence on the physical properties of the CdO thin films.