A low thermal budget (with 550°C annealing) process with Ti-compensation for sputtered ferroelectric PZT thin films has been developed. PZT films with a composition near the morphotrophic phase boundary (Zr/Ti = 53/47) annealed at 550°C for 1 hr in a N2ambient exhibits high charge storage density and low leakage current density, which are the important requirements of dielectric materials for ULSI DRAM cells. It was also found that Ti compensated films show good fatigue endurance in comparison with non-Ti compensated films.