Abstract: For many years magnesium oxide (MgO) has been a topic of research as buffer layer for high-temperature superconducting copper oxides and as protective layer in plasma display panels. Since epitaxial growth of MgO is expensive, time consuming and size restricted, other techniques have been developed to grow highly oriented MgO layers for industrial processes. MgO thin films were deposited on a tilted polycrystalline substrate by reactive sputtering using an unbalanced magnetron. By varying different deposition parameters, it is possible to grow biaxially aligned MgO layers, i.e. layers with both out-of-plane and in-plane alignment. XRD measurements were performed to examine the crystallographic structure of the thin film. The preferential out-of-plane orientation is analysed by angular scans using the peak intensity of different reflections while the in-plane orientation is determined by (002) pole figures. Fully [111] out-of-plane oriented layers were grown with a strong in-plane alignment. SEM and TEM measurements were performed to reveal the topographical and cross-sectional microstructure and to investigate the texture evolution of the MgO layers. Evolutionary columnar growth and a roof-tile surface have been observed.