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Tin-doped Indium oxide (ITO) thin films were prepared by sol-gel dip-coating technique using low-cost metal salts and organic solvents. The coated films were treated without annealing or annealed at 400°C and 600°C in 3% H2/97% N2mixtures atmosphere. Microstructure, optical, and electrical properties of the prepared ITO films were investigated in detail. The maximum transmittance in the visible range (380–780 nm) is 85.6%, and the best resistivity is5×10−2 Ω-cm when annealed at 600°C in 3% H2/97% N2mixtures atmosphere. It is found that the optical and electrical properties of the prepared ITO films are strongly related to the microstructure variation. The organic compounds could not be removed completely, and the prepared ITO thin films were not dense when the prepared ITO film was annealed at 600°C in 3% H2/97% N2mixtures atmosphere, causing the poor conductivity.