MgO is known to be a good candidate for protective materials in Plasma Display Panel industries. Electron beam evaporation has been used to deposit MgO on glass substrates, but it has some problems in large scale production equipment for panels larger than 55 inch in diagonal. Currently, in-line type magnetron sputtering machine appears to be a solution in thickness uniformity point of view. HCD based ion plating was tried and produced very dense layer of MgO along with longer service life as a protective layer. In this study, reactive ionized PVD is tried in depositing MgO using 2 MHz ICP source along with bipolar pulsed dc sputtering power source for Mg metal target. Characteristics of deposited MgO was analysed by XRD, AFM, transparency and erosion rate. As an in- situ analysis, optical emission spectroscopy was used to monitor dissociation level of oxygen and ionization level of sputtered Mg. In mass flow rate of Ar:O2 = 10 : 2, transparent, hard MgO films were obtained lower than 300C of substrate temperature. Also the post treatment using in-situ oxygen ICP was tried to stabilized the as-deposited surface of MgO. Crystal preferred orientation varied from (111), (200) to (220) and by optimizing the plasma condition, films having similar crystalinity of bulk (JCPDS data) was successfully obtained.