We present a comprehensive study on Ti-doped ZnO thin films using X-ray Absorption Fine Structure (XAFS) spectroscopy. Ti K edge XAFS spectra were measured to study the electronic and chemical properties of Ti ions in the thin films grown under different ambient atmospheres. A strong dependence of Ti speciation, composition, and local structures upon the ambient conditions was observed. The XAFS results suggest a major tetrahedral coordination and a 4+ valence state. The sample grown in a mixture of 80% Ar and 20% O2 shows a portion of precipitates with higher coordination. A large distortion was observed by the Ti substitution in the ZnO lattice. Interestingly, the film prepared in 80% Ar, 20% O2 shows the largest saturation magnetic moment of 0.827 ± 0.013 µB/Ti.