We report the reduction in residual stress of AlN thin films and also the crystal structure, surface morphology and nanomechanical properties of magnetron sputtered as a function of substrate temperature (T s , 35 -600 • C). The residual stress of these films was calculated by sin 2 ψ technique and found that they are varying from tensile to compression with temperature (T s ). Evolution of crystalline growth of AlN films was studied by GIXRD and transmission electron microscopy (TEM) and a preferred a-axis orientation was observed at 400 • C. The cross-sectional TEM micrograph and selected area electron diffraction (SAED) of this film exhibited a high degree of orientation as well as a columnar structure. Hardness (H) measured by Nanoindentation technique on these films ranged between 12.8 -19 GPa.Submitted to: J. Phys. D: Appl. Phys.