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Aluminum doped zinc oxide (AZO) thin films were obtained by RF magnetron sputtering. The effects of deposition parameters such as power, gas flow conditions, and substrate heating have been studied. Deposited and annealed films were characterized for composition as well as microstructure using x ray photoelectron spectroscopy and x ray diffraction. Films produced were polycrystalline in nature. Surface imaging and roughness studies were carried out using SEM and AFM, respectively. Columnar grain growth was predominantly observed. Optical and electrical properties were evaluated for transparent conducting oxide applications. Processing conditions were optimized to obtain highly transparent AZO films with a low resistivity value of 6.67 × 10-4 Ω cm.