CdS thin films were prepared by thermal evaporation onto glass substrate in vacuum better than 5.5x10-5 mbar. The obtained films were subsequently annealed in a pure nitrogen atmosphere at temperature between 100 to 500°C for 30 min. The crystal structure and surface morphology of the as-deposited and annealed films were investigated by XRD and SEM, respectively. Optical band gap and Urbach tail values of the films, determined from spectral transmission data, were found to be slightly varied in the range 2.36-2.40 eV and 110-160 meV, respectively, due to annealing temperature. The refractive index of the films was also evaluated from the spectral transmission data. The dependence of the refractive index on the wavelength obeys the single oscillator model, from which the important parameters such as refractive index, extinction coefficient, oscillator energy (E0) and dispersion energy (Ed) of the films with different annealing temperatures were determined. From the experimental results, the optical parameters of the films are obviously influenced by annealing temperature.