Abstract Nano-crystalline Zn 0.95 – x Mn 0.05 Al x O ( x = 0, 0.05, 0.10) dilute magnetic semiconductors (DMS) were synthesized by sol–gel derived auto-combustion. X-ray diffraction (XRD) analysis shows that the samples have pure wurtzite structure typical of ZnO without the formation of secondary phases or impurity. Crystallite sizes were approximated by Scherrer formula while surface morphology and grain sizes were measured by field emission scanning electron microscopy. Incorporation of Mn and Al into the ZnO structure was confirmed by energy-dispersive X-ray analysis. Temperature dependent electrical resistivity measurements showed a decreasing trend with the doping of Al in ZnMnO, which is attributable to the enhancement of free carriers. Vibrating sample magnetometer studies confirmed the presence of ferromagnetic behavior at room temperature. The results indicate that Al doping results in significant variation in the concentration of free carriers and correspondingly the carrier-mediated magnetization and room temperature ferromagnetic behavior, showing promise for practical applications. We attribute the enhanced saturation magnetization and electrical conductivity to the exchange interaction mediated by free electrons.