Zinc oxide nanorods and diluted magnetic semiconducting Ni doped ZnO nanorods were prepared by thermal decomposition method. This method is simple and cost effective. The decomposition temperature of acetate and formation of oxide were determined by TGA before the actual synthesis process. The X-ray diffraction result indicates the single phase hexagonal structure of zinc oxide. The transmission electron microscopy and scanning electron microscopy images show rod like structure of ZnO and Ni doped ZnO samples with the diameter ~ 35 nm and the length in few micrometers. The surface analysis was performed using X-ray photoelectron spectroscopic studies. The Ni doped ZnO exhibits room temperature ferromagnetism. This diluted magnetic semiconducting Ni doped ZnO nanorods finds its application in spintronics.