The evolution of microstructure and optical properties of TiO2 sculptured thin films under thermal annealing is reported. XRD, field emission SEM, UV-Vis-NIR spectra are employed to characterize the microstructurai and optical properties. It is found that the optimum annealing temperature for linear birefringence is 500℃. The maximum of transmission difference for linear birefringence is up to 18%, which is more than twice of that in as-deposited thin films. In addition, the sample annealed at 500℃ has a minimum of column angle about 12℃. The competitive process between the microstructural and optical properties is discussed in detail. Post-annealing is a useful method to improve the linear birefringence in sculptured thin films for practical applications.