In this paper we present the fabrication of cadmium telluride (CdTe) nanostructures by means of RF magnetron sputtering followed by low-energy ion implantation and post-thermal treatment. We have thoroughly studied the structural, optical, and morphological properties of these nanostructures. The effects of nitrogen ion bombardment on the structural parameters of CdTe nanostructures such as crystal size, microstrain, and dislocation density have been examined. From x-ray diffractometer (XRD) analysis it could be deduced that N+ ion fluence and annealing treatment helps to form (3 0 0) orientation in the crystalline structure of cadmium-telluride films. Fluctuations in optical properties like the optical band gap and absorption coefficient as a function of N+ ion fluences have been observed. The annealing of the sample irradiated by a dose of 1018 ions cm−2 has led to great enhancement in the optical absorption over a wide range of wavelengths with a thickness of 250 nm. The enhanced absorption is significantly higher than the observed value in the original CdTe layer with a thickness of 3 μm. Surface properties such as structure, grain size and roughness are noticeably affected by varying the nitrogen fluences. It is speculated that nitrogen bombardment and post-annealing treatment results in a smaller optical band gap, which in turn leads to higher absorption. Nitrogen bombardment is found to be a promising method to increase efficiency of thin film solar cells.