In this work, the recovery of etching damage in the etched PZT thin film with $O_2$ annealing has been studied. The PZT thin films were etched as a function of Cl$_2$/Ar and additive CF$_4$ into Cl$_2$(80%) /Ar(20%). the etch rates of PZT thin films were 1600$AA$/min at Cl$_2$(80%)/Ar(20%) and 1970 $AA$/min at 30% additive Cf$_4$ into Cl$_2$(80%)/Ar(20%). In order to recover the characteristics of etched PZT thin films, the etched PZT thin films were annealed in $O_2$ atmosphere at various temperatures. From the hysteresis curves, ferroelectrical properties are improved by $O_2$ annealing process. The improvement of ferroelectric behavior is consistent with the increase of the (100) and (200) PZT phase revealed by x-ray diffraction (XRD). From x-ray photoelectron spectroscopy (XPS) analysis, intensities of Pb-O, Zr-O and Ti-O peak increase and the chemical residue peak is reduced by $O_2$ annealing. From the atomic force microscopy (AFM) images. it shows that the surface morphology of re-annealed PZT thin films after etching is improved.