Multilayer transparent electrodes, having a much lower electrical resistance than the widely used transparent conducting oxide electrodes, were prepared by using magnetron sputtering. The multilayer structure consisted of three layers, tin-doped indium oxide (ITO)/Ag/ITO. Because only Ag deposits with a thickness larger than 14 nm form a continuous film, the optimum thickness of Ag thin films was determined to be 14 nm for high optical transmittance and good electrical conductivity. With about 55-60 nm thick ITO films, the multilayer showed a high optical transmittance in the visible range of the spectrum and had color neutrality. The electrical and optical properties of the ITO/Ag/ ITO multilayer were changed mainly by Ag film properties, which were affected by the deposition process of the upper layer. A high quality transparent electrode, having a resistance as low as 4 Omega/square and a high optical transmittance of 90% at 550 nm, was obtained and could be reproduced by controlling the preparation process parameter properly. It could satisfy the requirement fur the SVGA mode STN-LCD.