Colloidal Co-doped ZnS Quantum dots (QDs) were successfully synthesized through a facile and effective chemical co-precipitation method using polyethylene glycol (PEG) as a capping agent. A comprehensive study on the structure, optoelectronic, and magnetic properties of ZnS: Co2+ QDs was thoroughly carried out using diverse characterization techniques. Transmission electron micrographs reveal spherical QDs with a mean particle size of 5 ± 0.5 nm, whereas the X-ray diffraction (XRD) analysis and Raman spectroscopy confirm the exclusive presence of cubic ZnS phase structure, without any signs of Co-related impurity phases. Energy-dispersive x-ray (EDX) analysis verifies the presence of only three elements: Zinc, Cobalt, and Sulphur, with nearly stoichiometric proportions. X-ray photoemission (XPS) analysis confirmed the presence of Co2+ ions in the divalent oxidation state as well as the fair existence of sulphur vacancies. Optical measurements demonstrate that Co-doping in ZnS leads to a decrease in the optical band gap owing to the presence of defects that create localized states within the band structure. In addition, the refractive index (n) is found to increase with Co-doping level due to the increase in the polarizability. The outcomes of optical properties reveal that the tunability of the optical band gap and dispersive oscillator parameters in Co-doped ZnS QDs results in an enhancement of the non-linear optical parameters, such as third-order non-linear optical susceptibility χ(3), and non-linear refractive index n2, rendering them well-suited for applications in optoelectronic devices. Furthermore, the room-temperature photoluminescence (PL) spectra revealed that the Co-doped ZnS QDs have two broad emission bands, including the blue emission, and the green emission. By varying the level of Co-doping, it becomes possible to effectively control the relative PL intensities of dual-color emissions, highlighting their potential for producing adjustable color outputs. The room temperature ferromagnetic behaviour of the QDs has been observed and analyzed in accordance with the bound magnetic polarons model. These findings suggest that Co-doped ZnS QDs can be utilized effectively in the design of spintronic devices.