In this study, transparent conducting Al-doped Zinc Oxide (AZO) films with a thickness of 150 nm were prepared on corning glass substrate by the RF magnetron sputtering with using a Al-doped zinc oxide (AZO), ($Al_2O_3$: 2 wt%) target at room temperature. This study investigated the effect of rapid thermal annealing temperature and oxygen ambient on structural, electrical and optical properties of Al-doped zinc oxide (AZO) thin films. The films were annealed at temperatures ranging from 400 to $700^{circ}C$ by using Rapid thermal equipment in oxygen ambient. The effect of RTA treatment on the structural properties were studied by x-ray diffraction and atomic force microscopy. It is observed that the Al-doped zinc oxide (AZO) thin film annealed at $500^{circ}C$ at 5 minute oxygen ambient gas reveals the strongest XRD emission intensity and narrowest full width at half maximum among the temperature studied. The enhanced UV emission from the film annealed at $500^{circ}C$ at 5 minute oxygen ambient gas is attributed to the improved crystalline quality of Al-doped zinc oxide (AZO) thin film due to the effective relaxation of residual compressive stress and achieving maximum grain size.