Annealing effects on Al-Nd (0.19 - 1.82 at. %) thin films deposited on a glass substrate have been investigated. It is found that the resistivity of an Al-Nd-alloy thin film decreases significantly after annealing at 300 degrees C or higher temperatures. Using cross-sectional transmission electron microscopy (X-TEM), we have observed segregation of Al-Nd intermetallic precipitates and pure-Al grains during the annealing. The decrease of the resistivity can be attributed to the segregation. Segregation has been also detected from the increase of diffracted X-ray intensities corresponding to Al-Nd inter-metallic compounds in X-ray diffraction (XRD) analysis. Atomic force microscopy (AFM) observation has revealed that the optimum content ratio of Nd in Al-Nd alloys used as interconnect materials for thin-film-transistor liquid crystal display (TFT/LCD) applications is around 0.97 atomic %.