Nano Ag-ITO films with Ag volume fraction of 0.3%−1.0% were prepared by radio-frequency magnetron co-sputtering and analyzed by X-ray diffraction, scanning electron microscopy and ultraviolet-visible spectroscopy. Microstructure analysis shows that the films are composed of polycrystalline ITO matrix embedded with Ag nanoparticles with a mean size of 60-100 nm. Transmissivity spectra of Ag-ITO films indicate that the visible light transmissivity of the films decreases with increasing the Ag fraction. The transmissivity of the annealed films is higher than that of the as-deposited films. The volume 0.3% Ag-ITO films have the highest light reflectance. The annealed films exhibit lower light absorptance than as-deposited films. A surface plasmon resonance (SPR) peak of volume 0.3% Ag-ITO films is located around 510 nm. Compared with the annealed ITO film, the annealed volume 0.3% Ag-ITO film shows 10% higher reflectivity, while its transmittance is almost the same as that of the annealed ITO film, indicating its potential application in new-type transflective displays. nanoparticle films, microstructure, optical properties, transflective displays Citation: Xiao L, Cao C B, Song X P, et al. Microstructure and optical properties of nano Ag-ITO films.