We have propsed MgO/AZO bi-layer transparent conducting oxide (TCO) for thin film solar cells. From XRD analysis, it was observed that the full width at half maximum of AZO decreased when it was grown on MgO precursor. The Hall mobility of MgO/AZO bi-layer was 17.5cm2/Vs, whereas that of AZO was 20.8cm2/Vs. These indicated that the crystallinity of AZO decreased by employing MgO precursor. However, the haze (=total diffusive transmittance/total transmittance) characteristics of highly crystalline AZO was significantly improved by MgO precursor. The average haze in the visible region increased from 14.3 to 48.2%, and that in the NIR region increased from 6.3 to 18.9%. The reflectance of microcrystalline silicon solar cell was decreased and external quantum efficiency was significantly improved by applying MgO/AZO bi-layer TCO. The efficiency of microcrystalline silicon solar cell with MgO/AZO bi-layer front TCO was 6.66%, whereas the efficiency of one with AZO single TCO was 5.19%.