In this study, transparent conducting Al-doped Zinc Oxide (AZO) films with a thickness of 150 nm were prepared on corning glass substrate by the RF magnetron sputtering with using a Al-doped zinc oxide (AZO), (Al2o3: 2 wt%) target at room temperature. This study investigated the effect of rapid thermal annealing temperature and oxygen ambient on structural, electrical and optical properties of Al-doped zinc oxide (AZO) thin films. The films were annealed at temperatures ranging from 400 to 700℃ by using Rapid thermal equipment in oxygen ambient. The effect of RTA treatment on the structural properties were studied by x-ray diffraction and atomic force microscopy. It is observed that the Al-doped zinc oxide (AZO) thin film annealed at 500℃ at 5 minute oxygen ambient gas reveals the strongest XRD emission intensity and narrowest full width at half maximum among the temperature studied. The enhanced UV emission from the film annealed at 500℃ at 5 minute oxygen ambient gas is attributed to the improved crystalline quality of Al-doped zinc oxide (AZO) thin film due to the effective relaxation of residual compressive stress and achieving maximum grain size.