Laser damage resistance of a transparent optical component significantly depends on its substrate surface quality. In this work low energy oxygen plasma etching of fused silica (FS) substrates was investigated in terms of plasma ion energy and etching depth. Laser induced damage threshold (LIDT) and surface roughness of experimental samples were measured and compared. The LIDT of plasma treated uncoated FS substrate increased from 5.0 +/- 0.3 J/cm(2) up to 75 +/- 4 J/cm(2) for 355 nm laser ns pulses without any surface roughness deterioration. Anti-reflective (AR) optical interference coating for 355 nm wavelength was deposited on plasma etched and non-etched substrates. Measured LIDT of plasma etched and AR coated component was 3.4 times higher comparing to coated non-etched substrate case and reached 14 +/- 0.7 J/cm(2). These results demonstrate successful application of low energy oxygen plasma etching for improving laser induced damage performance of uncoated and AR coated fused silica substrate without deterioration of surface roughness. This application could be also successfully extended for production of other transparent high power UV laser optics like polarizers, beam splitters, etc.