Vanadium dioxide thin films were fabricated through annealing vanadium oxide thin films deposited by dual ion beam sputtering. X-ray diffraction (XRD), atom force microscopy (AFM), and Fourier transform infrared spectrum (FTIR) were employed to measure the crystalline structure, surface morphology, and infrared optical transmittance. The phase transition properties were characterized by transmittance. The results show that the annealed vanadium oxide thin film is composed of monoclinic VO2, with preferred orientation of (011). The maximum of transmittance change is beyond 65% as the temperature increases from 20 to 80 C. The reversible changes in optical transmittance against temperature were observed. The change rate of transmittance at short wavelength is higher than that at long wavelength at the same temperature across semiconductor-metal phase transition. This phenomenon was discussed using diffraction effect. Vanadium dioxide thin films were fabricated through annealing vanadium oxide thin films deposited by dual ion beam sputtering. X-ray diffraction (XRD), atom force microscopy (AFM), and Fourier transform infrared spectra (FTIR) were employed to measure the crystalline structure, The results show that the annealed vanadium oxide thin film is composed of monoclinic VO2, with a preferred orientation of (011). The maximum of transmittance change is beyond 65% as the temperature increases from 20 to 80 C. The reversible changes in transmittance transmittance at temperatures were observed. This change rate of transmittance at short wavelength is higher than that at long wavelength at the same temperature across semiconductor-metal phase transition. This phenomenon was discussed using diffraction effect.