The electrical characteristics and stability of amorphous indium-zinc-tin oxide (IZTO) thin-film transistors (TFTs) were significantly improved in this study using low-energy Xenon pulsed-light annealing (PLA). In comparison to conventional furnace annealing (FA), PLA treatment significantly reduced the processing temperature and annealing time. Besides, the defect states are obviously reduced from 1.73×1012 cm-2 to 6.53×1011 cm-2 by PLA treatment, resulting in improved device electrical characteristics and enhanced reliability, including improved carrier mobility from 20.08 to 39.61 cm2/V∙s, threshold voltage from 0.82 to 0.24 V, subthreshold swing (S.S.) from 0.54 to 0.24 V/decade, and the ON/OFF current ratio from 2.32×107 to 7.31×108. In addition, the enhanced stability is observed under both positive gate-bias stress (PGBS) of VGS = 30 V and negative gate-bias stress (NGBS) of VGS = –30 V for a stress duration of 3000 s. The threshold voltage shift (ΔVTH) is reduced from 8.31 V to 1.65 V and from –3.93 V to –1.51 V, respectively. This is the first time low-energy PLA was conducted for IZTO TFT performance improvement.