A MgO layer is used as electrode protective film in the alternating current plasma display panel (AC PDP). The properties of MgO layer are thought to be one of the most important factors that affects the panel reliability through the firing voltage variation. In this study, we investigated the relations between the surface characteristics and e-beam evaporation process parameters such as deposition rate, temperature of substrate and distance between the MgO pellet and substrate. To produce the MgO layer of (200) crystal orientation, we suggest the high temperature of the substrate, the long distance between the pellet and substrate and the high deposition rate.