In this work, the prior indentation theory for a bulk material is extended to an indentation theory for evaluation of thin-film material properties. We first select the optimal data acquisition location, where the strain gradient is the least and the effect of friction is negligible. A new numerical approach to the thin-film indentation technique is then proposed by examining the finite element solutions at the optimal point. With this new approach, from the load-depth curve, we obtain the values of Young's modulus, yield strength, strain-hardening exponent. The average errors of those values are less than 3, 5, 8% respectively.