Optical absorption along the three crystallographic axes of (NH4)2ZnCl4 single crystals is reported over a temperature range from 276 K to 350 K. Our results clearly confirm the antiferroelectric to commensurate phase transition at 319 K. Analysis reveals that at the absorption edge the type of transition is the indirect allowed one. The indirect band gaps at various temperatures are determined and their temperature dependence is estimated in the antiferroelectric and commensurate phases. Optical parameters related to the temperature dependence of the energy gap are evaluated. The single-effective oscillator model was used to describe the imaginary part of the dielectric constant, which facilitate calculation of the dipole moment parameters. The steepness parameter is given, its value is used to estimate the temperature dependence of the indirect energy gap and the result is compared with that calculated graphically. In the region of the absorption edge, the absorption coefficient obeys Urbach's rule. Urbach characteristic parameters are determined and their temperature dependence is investigated. Correlation between different parameters is considered. Most of the results confirm the optical isotropic nature of AZC crystals. (© 2003 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim)