We comprehensively study the co-precipitation preparation of aluminum doped zinc oxide (AZO) nanoparticles, ceramic target and thin iflm deposition. The nanoparticles calcined below 700℃possessed pure wurtzite structure of ZnO. When the calcination temperature exceeded 700℃, ZnAl2O4 phase appeared. The resistivity and relative density of the AZO target pressed from nanoparticles were 3×10-3Ω?cm and 99.1%, respectively. The minimum resistivity of AZO thin films prepared by DC sputtering of the ceramic target reached 4.1×10–4Ω?cm with the mobility of 33 cm2/v?s and the carrier concentration of 4.5 ×1020 cm-3. The average optical transmittance of the AZO thin iflms in the visible wavelength range (400-800 nm) was more than 80%.