The pulsed laser evaporation (PLE) technique for deposition of thin films is characterized by a number of unique properties. Based on the experimental characteristics, a theoretical model is developed which considers the formation and anisotropic three dimensional expansion of the laser generated plasma. This model explains most of the experimental features observed in PLE. We have also employed the PLE technique for in-situ fabrication of YBa2Cu3O7 superconducting thin films on different substrates in the temperature range of 500–650°C. At temperatures below 600–C, a biased interposing ring between the substrate and the target was found to significantly improve the superconducting properties. The minimum ion channeling yields were between 3-3.5 % for films deposited on (100) SrTiO3 and (100) LaA1O3 substrates. The films exhibit very high critical current densities (Jc) with maximum values exceeding 6.5 x 106 amps/cm2 for silver doped YBa2Cu3O7 films on (100) LaA1O3 substrates, and the Jc also varies anisotropically with the magnetic field.