Abstract. The effects of high-temperature vacuum-annealing induced Mg deficiency inMgB 2 single crystals grown under high pressure were investigated. As the annealing temperature was increased from 800 to 975 °C, the average Mg content in the MgB 2 crystals systematically decreased, while T c remains essentially unchanged and the superconducting transition slightly broadens from ∼ 0.55 K to ∼ 1.3 K. The reduction of the superconducting volume fraction was noticeable already after annealing at 875 °C. Samples annealed at 975 °C are partially decomposed and the Mg site occupancy is decreased to 0.92 from 0.98 in asgrown crystals. Annealing at 1000 °C completely destroys superconductivity. X-ray diffraction analysis revealed that the main final product of decomposition is polycrystalline MgB 4 and thus the decomposition reaction of MgB 2 can be described as 2MgB 2 (s) → MgB 4 (s) + Mg(g). First-principles calculations of the Mg 1−x (V Mg ) x BB 2 electronic structure, within the supercell approach, show a small downshift of the Fermi level. Holes induced by the vacancies go to both σ and π bands. These small modifications are not expected to influence T c , in agreement with observations. The significant reduction of the superconducting volume fraction without noticeable T c reduction indicates the coexistence, within the same crystal, of superconductive and non-superconductive electronic phases, associated with regions rich and poor in Mg vacancies.