AlN thin film for SAW filter application was deposited on (100) silicon wafers by reactive magnetron sputtering method. The structural characteristics were dependent on the deposition conditions such as sputtering pressure, RF power, substrate temperature, and nitrogen partial pressure. Scanning Electron Microscope (SEM), X-ray Diffraction (XRD), Electron Probe MicroAnalyzer (EPMA) and Atomic Force Microscope (AFM) have been used to find out structural properties and preferred orientation of AlN thin films. Insertion loss of SAW devices was 28.51 dB and out of band rejection was about 24 dB.