Despite AlB2 is the most typical structure prototype of transition metal diborides (TMB2), studies on AlB2 thin films are scarce. Furthermore, although Al is the primary alloying element for TMB2 to improve their oxidation resistance, no such data are available for AlB2 thin films. Here, we develop AlBx thin films through non-reactive magnetron sputtering of an AlB2 compound target and investigate their microstructure, mechanical properties, thermal stability and oxidation resistance. Keeping the substrate temperature at 700 °C and increasing the Ar pressure during deposition from pAr = 0.4 to 0.8 to 1.2, Pa, the films‘ chemistry slightly varies between x = 1.99, 1.97, and to 2.27, respectively. Detailed transmission electron microscopy shows that the highly (0001)-oriented AlB2.27 thin film exhibits small platelet-like amorphous B regions next to the large columnar α-structured AlB2 crystals. In the as deposited state, this film exhibits an indentation hardness and elastic modulus of 19.2 ± 1.2 GPa and 331.8 ± 14.4 GPa, respectively. Between 850 and 900 °C, the AlB2.27 thin film starts to decompose into tetragonal (t-) AlB12, but still maintains dominant α structure up to 950 °C. At 1000 °C, the thin film is completely decomposed into t-AlB12 and hexagonal AlB10. The AlB2.27 thin film also shows exceptional oxidation-resistance with an onset temperature for the formation of oxides (α-Al2O3 and o-Al18B4O33) between 950 and 1000 °C when exposed to lab-air.