In this study, single crystal ZnO films are grown by pulsed laser deposition and ion beam processing is used alter the resistivity of the films. A 3He ion beam was chosen with a specific energy to transmutate oxygen into nitrogen. Analytical ion beam techniques were used to monitor the transmutation process, and changes in film characteristics were monitored by making resistance, photoconductivity and luminescence measurements before and after ion beam processing. The amount of nitrogen produced by this method was estimated to be ∼ 1014 cm−3, and was too low to be observable as a p-type dopant due to compensation by the naturally n-type material. However, the ion beam processed films improved dramatically in resistivity, defect luminescence was reduced and photoconductivity increases consistent with the improvements with resistivity were observed. These improvements were attributed to ion beam annealing of the crystal resulting in a reduction of point defects. In some films, blistering of the surface occurred and was attributed to the formation of gas bubbles which causes delamination of the film from the substrate.