he present study aims to investigate optical properties of Ag-Cu-Pd alloy thin films synthesized by DC-mag- netron sputtering method. The thin films are deposited on the glass and silicon substrates using Argon gas and Ag-Cu-Pd target. XRD analysis confirms the successful growth of Ag, Cu, and Pd NPs with FCC crystalline structure. Moreover, UV–visible absorption spectroscopy is applied to determine optical properties of the pre- pared samples which are affected by changes in surface morphology. The existence of single surface plasmon resonance (SPR) peak near 350 nm proves the formation of silver nanoparticles with a slight red shift through increasing deposition time. Ineffective thickness method (ITM) and Derivation of ineffective thickness method (DITM) are applied to extract optical band gap and transition type via absorption spectrum. SEM and AFM analyses show the distribution of near-spherical nanoparticles covering the surface of thin films. Furthermore, thickness variation affects the grain size. In addition, TEM image reveals the uniform size distribution of na- noparticles with an average particle size of about 15 nm. The findings show that increasing grain size and crystallite order along with the decrease of structural defect and disorders decrease optical band gap from 3.86 eV to 2.58 eV