The invention discloses a novel etching solution used in an oxide material system. The novel etching solution comprises an oxide etching solution, an adjustment agent for adjusting the thickness, and water. The invention also discloses an etching method and an application of the novel etching solution. The novel etching solution and the etching method are generally suitable for etching film materials based on Sn, Zn, Al, Ga and In and alloy oxides thereof, especially oxide materials of ZnO, AZO, GZO, IGZO and IZO, and can also be widely used for etching oxide materials for making fine electronic components, such as semiconductor photoelectric devices, solar cells, TFT film transistors, semiconductor integrated circuits and transparent electrodes. Compared with traditional etching solutions, the novel etching solution has the advantages of lateral etching inhibition, uneven etching prevention and etching residual prevention.