In this work, the etching of $CeO_2$ thin films has been performed in an inductively coupled $Ar/CF_4/Cl_2$ plasma. The highest etch rate of the $CeO_2$ thin film ws 250 ${AA}/min$ and the selectivity of CeO$_2$to SBT was 0.4 at a 10% additive $Cl_2$ into Ar/($Ar+CF_4$)gas mixing ratio of 0.8. From result of X-ray photoelectron spectroscopy (XPS) analysis, there are Ce-Cl and Ce-F bonding by chemical reaction between Cl, F and Ce. During the etching of $CeO_2$ thin films in $Ar/CF_4/Cl_2$ plama, Ce-Cl and Ce-F bond is formed, and these prodcuts can be removed by the physical bombardment of Ar ions. The 10% additive $Cl_2$ into the Ar/($Ar+CF_4$)gas mixing ratio of 0.8 could enhance the reaction between Cl, F and Ce.