In this study we have used a combinatorial approach for producing binary and ternary alloy thin film libraries using a lab-scale RF co-sputtering system. Initially we used two elemental sputtering targets, i.e. aluminum (Al) target and neodymium (Nd) target, to produce a film library of varying composition and successfully identified a suitable composition range (1.95―2.38 at% Nd) in which resistance to hillock formation and resistivity of the film spots were found to be satisfactory in annealed state (350℃, 30 min). In another case, in order to form ternary alloy composition library we have used two sputtering targets, i.e. an Al-0.5 at% Nd alloy target and an elemental Ni target. Though, co-sputtered Al-0.6 at% Nd-0.9 at% Ni alloy films showed satisfactory resistance to hillock formation and low resistivity after annealing, film deposited from a ternary alloy target with the same composition failed to show satis- factory resistance to hillock formation during annealing. In case of Al-0.6 at% Nd-0.9 at% Ni alloy target, 250 nm thick film showed poor resistance to hillock formation than the 500 nm thick film. This clearly showed thickness-dependent hillock performance of Al-0.6 at% Nd-0.9 at% Ni alloy. In this study it was found that, in addition to the process variables, metallurgical microstructure of the alloy sputtering targets had significant effect on the film properties which was not obvious from the results of films deposited using co-sputtering of the individual elemental targets. In this study we have used a combinatorial approach for producing binary and ternary alloy thin film libraries using a lab-scale RF co-sputtering system. Initially we used two elemental sputtering targets, ie aluminum (Al) target and neodymium (Nd) target, to produce a film library of varying composition and successfully identified a suitable composition range (1.95-2.38 at% Nd) in which resistance to hillock formation and resistivity of the film spots were found to be satisfactory in annealed state (350 ° C., 30 min) In another case, in order to form a ternary alloy composition library we have used two sputtering targets, ie an Al-0.5 at% Nd alloy target and an elemental Ni target. Though, co-sputtered Al-0.6 at% Nd- 0.9 at % Ni alloy films showed satisfactory resistance to hillock formation and low resistivity after annealing, film deposited from a ternary alloy target with the same composition failed to show satis- factory resistance to hillock formation during annealing. In case o f Al-0.6 at% Nd-0.9 at% Ni alloy target, 250 nm thick film showed poor resistance to hillock formation than the 500 nm thick film. % Ni alloy. In this study it was found that, in addition to the process variables, metallurgical microstructure of the alloy sputtering targets had significant effect on the film properties which was not obvious from the results of film deposition using co-sputtering of the individual elemental targets.