This paper presents a detailed analysis of aluminium-doped zinc oxide (AZO) thin films and considers them a promising alternative to indium tin oxide in transparent electrodes. The study focusses on critical properties of AZO, including optical, electrical, and mechanical properties, with potential applications in displays, photovoltaic cells, and protective coatings. The deposited AZO thin films are characterised by excellent optical and electrical parameters, with transparency in the visible light range exceeding 80% and resistivity of 10 −3 Ω·cm, which gives a high value of figure of merit of 63. Structural analysis confirms the nanocrystalline nature of as-deposited AZO thin films, featuring hexagonal ZnO, orthorhombic Al₂O₃, and cubic Al₂ZnO₄ phases. The study includes nanoindentation measurements, which reveal exceptional hardness (11.4 GPa) and reduced elastic modulus (98 GPa), exceeding typical values reported in the literature, highlighting their protective potential. Abrasion tests have shown extraordinary scratch resistance due to the lack of impact on topography and surface roughness up to 10,000 cycles. This comprehensive study demonstrated that as-deposited AZO thin films are multifunctional materials with exceptional optical, electrical, and mechanical properties. The findings open up possibilities for a variety of applications, especially in protective coatings, where the combination of hardness, scratch resistance, and transparency is both rare and valuable.