A thin buffer layer of cadmium oxide (CdO) was used to enhance the optical and electrical properties of indium tin oxide (ITO) films prepared by an electron-beam evaporation technique. The effects of the thickness and heat treatment of the CdO layer on the structural, optical and electrical properties of ITO films were carried out. It was found that the CdO layer with a thickness of 25 nm results in an optimum transmittance of 70% in the visible region and an optimum resistivity of 5.1 × 10 −3 cm at room temperature. The effect of heat treatment on the CdO buffer layer with a thickness of 25 nm was considered to improve the optoelectronic properties of the formed ITO films. With increasing annealing temperature, the crystallinity of ITO films seemed to improve, enhancing some physical properties, such as film transmittance and conductivity. ITO films deposited onto a CdO buffer layer heated at 450• C showed a maximum transmittance of 91% in the visible and near-infrared regions of the spectrum associated with the highest optical energy gap of 3.61 eV and electrical resistivity of 4.45 × 10 −4 cm at room temperature. Other optical parameters, such as refractive index, extinction coefficient, dielectric constant, dispersion energy, single effective oscillator energy, packing density and free carrier concentration, were also studied.