The photochromic effect was also observed in oxygen-containing gadolinium, dysprosium as well as erbium hydride and it has been concluded that reactively sputtered lanthanide-based hydrides behave similarly as the yttriumbased thin films, suggesting a common physical mechanism of the photochromic effect. [3] Based on charge neutrality considerations, the authors suggested a single-phase structure and introduced the term "metal oxyhydrides," [3] whereas previously such photochromic thin films were referred to as oxygen-containing metal hydrides. [1,2,4-7] The single-phase structure notion has been emphasized further by the proposal of a generalized simplified model of an aniondisordered fcc lattice. [8] This model was based on ion beam analysis and X-ray diffraction data, obtained from photo chromic oxygen-containing scandium, yttrium, and gadolinium hydride thin films. [8] Recently, diffraction data from photochromic oxygen-containing yttrium hydride were interpreted as indication for a multiphase nature. [9] Despite the fact that the phase formation has not been identified, [9] the interpretation of a multiphase nature is obviously in conflict with the notion of singlephase photochromic metal oxyhydride thin films. [3,8] Here, we critically evaluate the phase formation of photochromic oxygencontaining gadolinium hydride thin films. The evidence of a dual-phase structure in combination with a significant compressive residual stress state provides a straightforward explanation for the photochromic effect. Consequently, the notion of single-phase photochromic metal oxyhydrides, discussed in literature, is flawed.