All-inorganic CsPbI 3 perovskite has emerged as a promising candidate for next-generation solar cells. However, owing to the poor structural stability of black phase CsPbI 3 perovskite at room temperature, it spontaneously transforms to the yellow, photoinactive, nonperovskite phase at room temperature, limiting further development of CsPbI 3 perovskite solar cells. To better understand the mechanism driving such undesirable phase transformation, we examine the thermodynamics and kinetics associated with γ-to-δ phase transformation using density functional theory calculation. A solid-state nudged elastic band method was employed to find minimum energy pathways assuming a concerted solid-state phase transformation between these two phases. The gas molecules representing atmospheric (H 2 O, O 2 , and N 2 ) and inert (Ar) ambient environments, as well as applied external pressure, were considered to examine the influence of external conditions on the black-to-yellow phase transition. Our calculation reveals that, with increasing pressure, the thermodynamic driving force for converting the γ-phase to the δ-phase increases, whereas a larger activation energy must be overcome for the phase transition to occur. We also investigate the moisture-induced phase transformation with an H 2 O molecule and its dissociated species (H + /OH − ) and demonstrate that the reaction energy barriers can be significantly lowered in the presence of H 2 O or OH − . On the other hand, other nonpolar species (O 2 , N 2 , and Ar) have a negligible effect on the phase transformation kinetics, while they might reduce the thermodynamic driving force for the phase transformation and suppress the undesirable phase transformation. Our theoretical prediction could support recent observations that the γ-to-δ phase transformation occurs rapidly and catalytically in the presence of moisture, whereas in dry argon and dry oxygen atmospheres, the γ-CsPbI 3 remains stable.