Photoluminescence and photoreflectance measurements are carried out in order to investigate the effects of annealing and hydrogenation on the defect levels of neutron‐transmutation‐doped (NTD) GaAs. The damage to the crystallinity of NTD GaAs is recovered by annealing, and the defects in the annealed NTD GaAs are compensated for by hydrogen atoms after hydrogenation. Since the transmutation‐doped impurities in GaAs are compensated for by the injection of hydrogen atoms, Franz‐Keldysh oscillations appear due to the large variation in the surface electric field.