The VO₂ and VO₂-SiO₂ composite films were prepared by sol-gel method. The phase structure and transmittance of films were characterized by X-ray diffraction (XRD) and ultraviolet visible spectrophotometer. The results reveal that the prepared VO₂ film is monoclinic phase (B), and the XRD patterns of VO₂-SiO₂ composite film is similar to that of VO₂ film. The optical transmittance of films have reached over 90% within the range of 450 nm to 800 nm. The laser induced damage threshold (LIDT) of VO₂-SiO₂ composite film is 3.9 J/cm², which is 77.3% higher than that of VO₂ film. The difference in damage morphology between VO₂ film and VO₂-SiO₂ film were studied by FESEM and step analyzer. The VO₂ film exhibits melt type damage, while the VO₂-SiO₂ film exhibits melt type damage and stress damage. In addition, laser-induced damage models for different films were constructed and damage characteristics and underlying mechanisms were discussed.