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Yes, it has the side rail for mounting optics.
I own the OPAP.
The best mount for it is the RS Regulate, you want the 307 for Yugo rifles.
Then you just decide what type of optic you want, regular scope, red dot, or something else.
Then once you've decided on your optic you purchase the proper top mount for that optic.
The accessories market for the AK is huge.
I recommend you buy a $5-7 hammer/trigger pin retaining plate first.

This is the Generation II Rifle which features a Side Rail for Scope Mount

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Hi Nate, Yes, it has the side rail for mounting optics.

This is the Generation II Rifle which features a Side Rail for Scope Mount

Yes Nate. This is the Generation II Rifle which features a Side Rail for Scope Mount. google.com/search?biw=1920&bih=938&tbm=isch&sa=1&ei=b7mvWuWNBYqc_QajuZiICw&q=Yugo+M70+AK+Semi-Auto+N-PAP+Gen+II+side+mount&oq=Yugo+M70+AK+Semi-Auto+N-PAP+Gen+II+side+mount&gs_l=psy-ab.3...145804.148260.0.148564.10.10.0.0.0.0.132.639.8j2.10.0....0...1c.1.64.psy-ab..0.0.0....0.VyvLzxGgICw#imgrc=R72zqCgZbz6yMM: