VO2 is a material with reversible thermo-chromic properties. The reversible phase transition of a strain-free single-crystalline VO2, at a transition temperature (Tt) 68°C, is accompanied with changes in crystal structure, optical and electrical properties. With different processing conditions during thin film deposition, different transmittance loops will be resulted upon thermal cycling. The residual stress of the thin films with poor crystallinity, as determined from X-ray diffractometry, is found to be an important factor responsible for the Tt that increases with increasing residual stress. Residual stress affects the hysteresis span of the transmittance loop. The relationship between residual stress of as-deposited VO2 films and the relative positions between vanadium and oxygen under the residual stress are also delineated.