The etching characteristics of indium tin oxide (ITO) thin films in an $O_2/BCl_3/Ar$ plasma were investigated. The etch rate of ITO thin films increased with increasing $O_2$ content from 0 to 2 sccm in $BCl_3$/Ar plasma, whereas that of ITO decreased with increasing $O_2$ content from 2 sccm to 6 sccm in $BCl_3$/Ar plasma. The maximum etch rate of 65.9 nm/m in for the ITO thin films was obtained at 2 sccm $O_2$ addition. The etch conditions were the RF power of 500 W, the bias power of 200 W, the process pressure of 15 mTorr, and the substrate temperature of $40^{circ}C$. The analysis of x-ray photo electron spectroscopy (XPS) was carried out to investigate the chemical reactions between the surfaces of ITO thin films and etch species.