Dysprosium (Dy) doped ZnO nanosheets and nanorods were synthesized by hydrothermal method. Effects of Cu doping, morphology and annealing in Oxygen ambient on structural and optical properties of ZnO nanostructures were investigated using X-ray diffraction (XRD), scanning electron microscopy (SEM), diffuse reflectance spectra (DRS) and photoluminescence (PL) spectroscopy. This study recommends that both of intrinsic and extrinsic defects facilitate energy transfer (ET) from the ZnO host to Dy(3+) ions and consequently have an effective role on producing intense Dy emissions at indirect excitation. The results also revealed that annealing process improved the crystal structure of ZnO nanorods due to decrease of surface; however decreased ET and Dy emissions because of diminishing in oxygen vacancy. In addition, as a result of increasing of surface area in nanorods compared to nanosheets, the oxygen vacancies and ET were enhanced. Moreover the results exhibited that electrical and optical properties of ZnO:Dy can be tuned by various amount of Dy concentrations and also Cu doping.