We report the synthesis and characterization of Mn doped ZnO nanocrystals, both in the free standing and PVP capped particle forms. The nanocrystals size could be controlled by capping them with polyvinylpyrollidone and was estimated by X-ray diffraction and transmission electron microscopy. The chemical compositions of the products were characterized by FT-IR spectroscopy. UV–Vis absorption spectroscopy measurements reveal that the capping of ZnO leads to blue shift due to quantum confinement effect. The morphology of the particles was evaluated by Scanning Electron Microscopy (SEM) and Transmission Electron Microscopy (TEM). Both the Thermo Gravimetric Analysis (TGA) and Differential Thermal Analysis (DTA) curves of the ZnO show no further weight loss and thermal effect at a temperature above 510 °C.