Ag‐doped YBa2Cu3O7−x(YBCO) thin films using 2–20 wt % Ag‐doped YBCO targets have been growninsituby the laser ablation technique. The improvement in properties in normal and superconducting states of Ag‐doped YBCO films has been interpreted using a two‐dimensional growth model. The model is simple and is based on widely accepted characteristics of Ag such as its flux action at high temperatures and its nonreactivity with YBCO phase. Experimental evidence in support of the growth model is presented by carrying out microstructural studies and measurements of room‐temperature resistivity, critical current density, and microwave surface resistance in superconducting state. ©1995 American Institute of Physics.