In this work, Xe ions were implanted into Al-doped ZnO (AZO) and ZnO films fabricated through radio frequency magnetron sputtering (RFMS). The structural, magnetic, and electrical properties of the Xe implanted ZnO and AZO were investigated. It was observed that the carrier concentrations of the samples increased with increasing Al doping content. Ferromagnetism was achieved in all the implanted ZnO and AZO films, with the magnetization exhibiting a dependence on the carrier concentration. Two distinct regions (zone II and zone I) can be delineated in light of carrier concentration in which the carrier-mediated exchange mechanisms and lattice defects play a crucial role in establishing the long-range ferromagnetic order, respectively. In addition, the ferromagnetic behaviour in Xe-implanted ZnO films (high dose) is associated with a high defect density of oxygen vacancies (Vo) and grain boundary defects, resulting in macroscopic d0 ferromagnetism. The results confirmed that controlled production of defects and appropriate electron doping in ZnO samples can provide new methods for devising ZnO-based diluted magnetic semiconductors for future spintronics devices.