The importance of ZnxMg1-xO is increasing day by day because of its wider bandgap than ZnO. This ternary semiconductor finds its application in the fields of optoelectronics, spintronics, superlattices due to its unique blueshifted UV-luminescent property, n- to p-type conduction which is the motive of the project can be achieved with increasing Mg content in ZnMgO. The optical characteristics of the nitrogen doped ZnxMg1-xO (x=0.85) grown on 2 inch Si 〈100〉wafer by RF sputtering are studied and analyzed thoroughly using low temperature (15K) photoluminescence measurements. Nitrogen implantation was carried out by Plasma immersion Ion Implantation technique on the sample. Rapid Thermal Process was employed to remove defects resulting from implantation. The samples were annealed at 700°C, 800°C, 900°C, and 1000°C for 10 seconds in an oxygen ambient. Photoluminescence (PL) measurements were performed at low temperature (15K) which exhibited acceptor-bound-exciton peak (A'X) and donor-bound-acceptor pair (DAP) at 3.336 eV and 3.236 eV respectively. At 3.364 eV, S peak was found for the sample annealed at 800 C after implantation. This peak was attributed to the existence of ZnO-like composition. Localized and de-localized exciton peaks were found around 3.42 and 3.45 eV respectively. This result is very important because though dominant acceptor peak was not found but proper optimization of the parameters can lead to p-type ZnMgO which is the main motive of this project. © 2015 Materials Research Society.