Irradiation by swift heavy ions (SHI) is unique tool to synthesize nanocrystalline thin films. We have reported transformation of 100 nm thick amorphous films into nanocrystalline film due to irradiation by 100 MeV Ag ion beam. Oblate shaped nanoparticles having anatase phase of TiO2 were formed on the surface of the irradiated films. In the present investigation, these films are annealed at 350 degrees C for 2 min in oxygen atmosphere by Rapid Thermal Annealing (RTA) method. During RTA processing, the temperature rises abruptly and this thermal instability is expected to alter surface morphology, structural and optical properties of nanocrystalline TiO2 thin films. Thus in the present work, effect of RTA on SHI induced nanocrystalline thin films of TiO2 is studied. The effect of RTA processing on the shape and size of TiO2 nanoparticles is studied by Atomic Force Microscopy (AFM) and Scanning Electron Microscopy (SEM). Glancing Angle X-ray Diffraction (GAXRD) studies are carried to investigate structural changes induced by RTA processing. Optical characterization is carried out by UV-vis spectroscopy and photoluminescence (PL) spectroscopy. The changes observed in structural and optical properties of nanocrystalline TiO2 thin films after RTA processing are attributed to the annihilation of SHI induced defects. (C) 2012 Elsevier B.V. All rights reserved.