Cadmium selenide (cdse) thin films on glass substrates were prepared by electron beam evaporation technique at various substrate temperatures and annealed at room temperature (RT), 100, 200 and 300 o C respectively.XRD spectra indicates that films are polycrystalline with the hexagonal structure. When the heat treatment temperature is increased to 100° C, the films became highly oriented along (002) plane. The microstructure parameters like particle size, stress, strain, and dislocation density were calculated. The grain size is within the range of 24 to 44 nm.