Microstructures are an important link between materials processing and performance, and microstructure control is essential for any materials processing route where the microstructure plays a major role in determining the properties. In this work, silver-doped titanium dioxide (Ag/TiO2) thin film was prepared by the sol-gel method through the hydrolysis of titanium tetra-isopropoxide and silver nitrate solution. The sol was spin coated on ITO glass substrate to get uniform film followed by annealing process for 2 hours. The obtained films were annealed at different annealing temperatures in the range of 300°C-600°C in order to observe the effect on crystalline state, microstructures and optical properties of Ag/TiO2 thin film. The thin films were characterized by X-Ray diffraction (XRD), scanning electron microscopy (SEM), and UV-Vis spectrophotometry. It is clearly seen, when the annealing temperature increases to 500°C, a peak at 2θ = 25.30° can be seen which refers to the structure of TiO2 tetragonal anatase. The structure of Ag/TiO2 thin film become denser, linked together, porous and uniformly distributed on the surface and displays the highest cut-off wavelength value which is 396 nm with the lowest band gap value, which is 3.10 eV.