AbstractColumnar wurtzite grains were formed in sputtered ZnO thin films deposited on a plastic polyethylene terephthalate substrate. Selected‐area diffraction patterns reveal that the columnar grains in the sputtered films present two preferred growth planes, namely, the basal (0002) and prismatic (100) growth planes. The diffraction patterns obtained also confirm that the microstructure of sputtered indium tin oxide thin films is amorphous in nature. Tensile tests indicate that the fracture strain of the ZnO thin film occurs between 1.73% and 2.14%, while the fracture strain of the indium tin oxide thin film occurs between 0.24% and 0.67%. Thus, the fracture toughness of the sputtered ZnO thin film is greater than that of the sputtered indium tin oxide thin film. High‐resolution transmission electron microscopic images demonstrate that edge and screw dislocations could be identified in the sputtered ZnO thin films. Moreover, edge and screw dislocation movements may, respectively, be observed in the basal‐ and prismatic‐oriented ZnO columnar grains of the sputtered ZnO thin films. Our results indicate that movements of the edge and screw dislocations in the basal‐ and prismatic‐oriented ZnO columnar grains account for the plastic deformation of the investigated ZnO thin films under tensile stress.