In this paper, we investigated effects of ITO electrode geometry and dielectric layer thickness on the discharge Characteristic of AC PDP. As the dielectric thickness is decreased ($30{sim}12{mu}m$), firing and sustain voltage is decreased. Luminance and discharge power increase with decreasing dielectric layer thickness because of increasing capacitance between plasma and electrodes. Reactive power decreases with dielectric thickness due to reduced capacitance between sustain electrodes. For the high Xe test panel with small ITO electrode, luminous efficacy as well as luminance increase with decreasing dielectric layer thickness. This result suggest that high power density and small plasma volume is beneficial for high efficacy discharge.