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ITO films on PET in combination with ITO films on glass substrates are extensively used in Touch Panel Displays fabrication. Main properties of interest for these systems are high optical transmittance ∽95%, low resistivity ∽10−3Ωcm, coupled with uniform and stable sheet resistivity demanded for long term use.The goal of this investigation is to understand relationship between microstructure and electrical/optical properties of ITO films on PET and glass substrates as a function of pre- and postdeposition annealing parameters.ITO films of ∽60 nm thick have been deposited by radiofrequency magnetron sputtering. This method can be applied over a wide range of substrate temperatures. This is essential for plastic substrates such as PET. Regions of good and poor conductivity have been identified for TEM analysis and Analytical Electron Microscope (Philips 400 EM), equipped with light element Noran Instrument Energy Dispersive X-ray Spectrometer (EDXS) have been utilized.