The influence of annealing in nitrogen atmosphere on the structure, optical and electrical properties of cadmium selenide (CdSe) thin films deposited by chemical bath deposition (CBD) onto glass substrates was studied. The samples were annealed in nitrogen atmosphere at various temperatures. A transition from metastable nanocrystalline cubic to stable polycrystalline hexagonal phase has been observed after annealing. The as-deposited CdSe thin films grow in the nanocrystalline cubic phase with optical band gap 1.93eV. The electrical resistivity of the thin films has been measured in order of 10 6 Ωcm. The activation energy of the samples has been found to be 0.26–0.19eV at low temperature region, and 0.36–0.56eV at high temperature region. It was also found that the activation energy and the resistivity of the films decrease with the increasing annealing temperature.