Effects of the annealing temperature on mechanical durability of indium-tin oxide (ITO) thin films deposited on polyethylene terephthalate (PET) substrates were investigated. The ITO films were annealed at the range from 150 C to 195 C after the DC sputtering deposition for the production of polycrystalline ITO layers on the substrates. The onset strains of cracking in the annealed ITO films were evaluated by the uniaxial stretching tests with electrical resistance measurements during film stretching. The results indicate that the onset strain of cracking in the ITO film is clearly increased by increasing the annealing temperature. The in-situ measurements of the inter-planer spacing of the (222) plane in the crystalline ITO films during film stretching by using synchrotron radiation strongly suggest that the large compressive stress in the ITO film increases the onset strain of cracking in the film. X-ray stress analyses of the annealed ITO films and thermal mechanical analyses of the PET substrates also clarifies that the residual compressive stress in the ITO film is enhanced with increasing the annealing temperature due to the considerably larger shrinkage of the PET substrate. (C) 2013 Elsevier B.V. All rights reserved.