Structural, electronic and optical properties have been calculated for Tin dioxide nanoribbons (SnO₂ NRs) with both zigzag and armchair shaped edges by first principle spin polarized total energy calculation. We find that both zigzag and armchair SnO₂NR have indirect band gaps. The band gap oscillates between the maximum of 3.38 eV and the minimum of 1.69 eV and eventually levels off to a value of 2.09 eV for armchair nanoribbons, while for zigzag nanoribbons, the band gap oscillates between the maximum of 2.25 eV and the minimum of 2.04 eV and eventually levels off to 2.18 eV. Our investigation further reveals that the optical absorption capacity enhanced with increasing ribbon width for both Z-SnO₂NRs and A-SnO₂NRs. More interestingly, when introducing Ag impurities, the optical absorption edge shifts to the low energy region. These findings can be a useful tool for the design of a new generation of materials with improved solar radiation absorption.