Undoped and Mg-doped thermochromic VO 2 films with atom ratios z ≡ Mg/(Mg + V) of 0 ≤ z < 0.21 were deposited by reactive DC magnetron sputtering onto heated glass and carbon substrates. Elemental compositions were found by Rutherford backscattering spectrometry. Optical constants were determined from transmittance and reflectance measurements and were used for modeling the optical properties of thin films and dilute nanoparticle composite layers below and above the critical temperature for thermochromic switching between a low-temperature infrared transparent state and a high-temperature infrared reflecting or absorbing state. Mgdoped films showed superior luminous transmittance T lum and solar transmittance modulation ΔT sol compared to undoped VO 2 films, and both of these parameters could be further enhanced by anti-reflection. VO 2 -containing nanocomposites had much larger values of T lum and ΔT sol than VO 2 -based films. Mg-doping was found to erode the properties of the nanocomposites. Approximate performance limits are given on T lum and ΔT sol for thermochromic VO 2 films, with and without Mg doping and antireflection coating, and also for VO 2 -containing dilute nanocomposites.--