In the present work we prepared Aluminum doped Zinc Oxide (AZO) thin films from powder targets. Various concentrations (W/W percentages) of Al2O3 such as1%, 2%, 3%, 4%, 5%, 6%, 7% and 8% were mixed in ZnO powder and made in the form of a 3 inch disc target. These ceramic targets are sputtered in RF magnetron sputtering unit for the deposition of AZO thin films. Optical and electrical properties are analyzed to get an optimized percentage of mixing for achieving high transparency and low resistivity. At Al2O3 percentage of 3% there is a considerable decrement in the resistivity, and at 7% there is a considerable decrease in the optical transmittance. Mobility and carrier concentration are increasing with Al2O3 percentage. Bandgap of the films is observed to be decreasing with increasing the Al2O3 percentage.