Thin films of lead zirconate titanate (PZT) have been prepared by the sol‐gel processing method using metal alkoxides. The crystallographic and morphological properties of the films have been analyzed by x‐ray diffraction and scanning electron microscopy. The elemental composition of the films was determined by Rutherford backscattering, electron microprobe, and Auger electron spectroscopy, and was compared to that of the precursor solution characterized by inductively coupled plasma spectrophotometry. Results are presented which illustrate the relationships between the properties and the observed structure of the thin films, with the processing conditions. The electrical properties, dielectric constant, and ferroelectric hysterisis response were tested to determine the quality of the films. The experimental observations suggest two competing mechanisms during the PZT formation: lead loss out of the film, and nucleation of the PZT phase with its subsequent crystallization.