In this work, the etch characteristics of $VO_2$ thin films were investigated using inductively coupled plasma (ICP) of $Cl_2/Ar$ gas mixtures. To analyze the plasma characteristics, a quadrupole mass spectrometer (QMS), an optical emission spectroscopy (OES), and a Langmuir probe measuring system were used. The surface reaction of the $VO_2$ thin films was investigated using X-ray photoelectron spectroscopy (XPS). It was found that an increase in Ar fraction in the $Cl_2/Ar$ plasma at fixed gas pressure, input power, and bias power resulted in increasing $VO_2$ etch rate which reached a maximum value of 87.6 nm/min at 70-75 % Ar. It was confirmed that the etch rate of the $VO_2$ films was mainly controlled by the ion flux. On the basis of measuring results, we will discuss possible etching mechanism of $VO_2$ film in the $Cl_2/Ar$ plasma.