ZnTe crystals grown from the melt have Te inclusions. The wafer annealing under Zn pressure was carried out to reduce Te inclusions in ZnTe wafers. It was found that the cyclic annealing process, where heating and cooling was done cyclically over a temperature range of several tens of degrees, was effective to annihilate the Te inclusions. We obtained the inclusion-free ZnTe crystals by optimising the temperature cycling condition.1 Introduction ZnTe is a promising material for optical devices [1, 2] and electro-optic (EO) devices [3][4][5] due to its physical property. Only low-brightness pure-green LEDs have been obtained and green laser diodes (LDs) using compound semiconductors have been underdeveloped. Thus the performance of optical devices in green region is poor compared with red and blue regions. ZnTe is expected as the material for the optical devices because it is a direct transition semiconductor with 2.26 eV energy gap at room temperature. ZnTe is also interesting as an EO crystal because of its high EO coefficient compared with the other compound semiconductors.For development of these ZnTe based devices, we grew large diameter single crystals by the melt growth method [6,7]. The grown crystals had many Te inclusions of around 5 µm in diameter. Because the composition at the congruent point largely deviates from the stoichiometrical composition to the Te excess region and the composition on the solidus line approaches the stoichiometrical composition as decreasing temperature [8], Te inclusions are inevitably precipitated in the cooling process after crystal growth. It is essential to use high quality crystals in order to fabricate the devices with high performance and high reliability, so that it is necessary to prepare ZnTe wafers without inclusions. In the case of CdTe and CdZnTe, pressure of Cd and/or Te was controlled to reduce inclusions during crystal growth [9]. To reduce inclusions in ZnTe, crystal growth under controlled Zn pressure in the furnace is also effective. It is, however, difficult to grow crystals under Zn pressure because quartz ampoules, conventionally used for sealing source materials for crystal growth, are not used owing to the high melting point of ZnTe and there are not suitable materials.So, in our previous work, wafer annealing under Zn pressure was applied in the quartz ampoule at lower temperatures than the melting point. It was found that the Te inclusions disappeared after the wafer annealing under proper Zn pressure and at proper annealing temperature, as long as evaluation was carried out by an optical microscope [10].We did not, however, scrutinize the crystallinity at the points where Te inclusions disappeared. In this work, therefore, we evaluated the point where the Te inclusion existed by a scanning electron microscope (SEM). Furthermore we investigated the proper thermal annealing process to improve the crystallinity of ZnTe single crystals.