The PZT thin films were fabricated to investigate the effect of sol-gel processing parameters on the physical and the electrical properties. The films were made with different amount of excess Pb precursors and drying temperatures, and then annealed in various ambients. The physical properties of the films such as crystallinity and microstructure were evaluated using x-ray diffraction, scanning electron microscopy and atomic force microscopy. The ferroelectric properties and current density characteristics of the films were investigated using a standarized feiroelectric test system and pA meter, respectively. It is found that the drying temperature was playing a key role in the formation of the secondary phase on the PZT thin films. In addition, it turned out that the use of nitrogen as an annealing ambient promoted overall ferroelectric properties, when compared to oxygen ambients.