Photochromic material Ag-TiO2 thin films are fabricated on quartz substrate by dual -target helicon magnetron sputtering. The phototchromic behavior is investigated for the sample loaded with 90% Ag. Spheres, ellipsoids and polyhedra shape of Ag particles with wide range size (5∼100 nm) are dispersed in the TiO2 amorphous matrix observed by transmission electron microscopy. The spectral hole burned by the irradiation of laser at the wavelength 532 nm can be explained by a particle-plasmon-assisted electron transfer from Ag nanoparticles to TiO2 and subsequent trapping by adsorbed molecular oxygen. Moreover, the mechanism of the slow recovery after photochromism is suggested as a slow thermal release of electrons from oxygen trapping centers and subsequent capture into the Ag nanoparticles.