The electrical characteristics of ZnO thin film transistor (TFT) were investigated. ZnO thin layer was deposited by DC sputtering method and TFTs with ZnO channel layer were fabricated. On/off current ratio and saturated drain current of fabricated devices were improved by annealing in nitrogen ambient at various temperatures. As a result, the electrical characteristics of ZnO TFT were improved by post annealing in nitrogen ambient and it is important to optimize the annealing conditions for ZnO TFT fabrication.