Cr-diffused cadmium telluride (CdTe) thin films with different Cr content were prepared using electron beam evaporation method at a substrate temperature of 373 K followed by annealing at 573 K. The structures, composition, chemical and magnetic properties of the prepared films were studied using appropriate techniques. The X-ray diffraction spectra showed a predominant (1 1 1) reflection corresponding to the zinc blende structure of CdTe. Increase of lattice parameter with increase in Cr content has been observed. The cross-sectional HRSEM images displayed a columnar grain growth in the films. EDAX data exposed the presence of Cr, Cd and Te with near stoichiometry. The Raman spectra revealed emission peaks corresponding to A1, TO and LO modes of CdTe showing gradual shift in peak position and decreased intensity confirming the incorporation of Cr into CdTe host lattice. M–H plots displayed a clear well-defined room temperature ferromagnetic hysteresis loop with increase in Cr content. © 2014, Springer-Verlag Berlin Heidelberg.