In this paper, we carried out the investigations of both etch characteristics and mechanisms for the SnO2 thin films in O2/BCl3/Ar plasma. The dry etching characteristics of the SnO2 thin films was studied by varying the O2/BCl3/Ar gas mixing ratio. We determined the optimized process conditions that were as follows: a RF power of 700 W, a DC-bias voltage of -150 V, and a process pressure of 2 Pa. The maximum etch rate was 509.9 nm/min in O2/BCl3/Ar=(3:4:16 sccm) plasma. From XPS analysis, the etch mechanism of the SnO2 thin films in the O2/BCl3/Ar plasma can be identified as the ion-assisted chemical reaction while the role of ion bombardment includes the destruction of the metal-oxide bonds as well as the cleaning of the etched surface form the reaction products.