In this study, AlF3 thin films were deposited by pulse magnetron sputtering of Al targets with different ratios of CF4/O2 gas and at different sputtering powers. The optical and mechanical properties of the AlF3 thin films were analyzed. The transmittance spectra showed no obvious negative inhomogeneous refractive indices. Denser films with a low optical absorption were obtained when high sputtering powers were used (larger than 30 W). The lowest extinction coefficient (7.3 × 10−4 at 193 nm) of the films can be reached with 12 sccm O2 flow rate and at 160W sputtering power. All of the residual stresses were compressive and their trends were consistent with the refractive indices. The lowest compressive stress (0.068 GPa) was obtained when the AlF3 films were prepared at 160W sputtering power.