The Fe-incorporated ZnO thin films prepared by magnetron sputtering at different deposition temperatures were investigated by X-ray diffraction (XRD) and high resolution transmission electron microscopy (HRTEM). The XRD patterns show the Films exhibit [001] preferred orientation which is perpendicular to the surface plane of the substrates. The growth direction tends to be along the [101]-axis when the deposition temperature is increased. Numerous defects have been observed in the present thin films. In the thin film deposited at 600 degreesC, a large number of stacking faults and domain lamellae were discovered at the bottom and the middle of the thin film, respectively. Polycrystallization occurred at the top of the thin films. It is suggested that Fe elements could have been incorporated into the ZnO thin films and these incorporated Fe ions, together with the deposition temperature, are responsible for the microstructural modifications in the microstructures of the thin films.