GaAs1−xBix alloys grown by molecular beam epitaxy for x up to 0.06 were studied by photoluminescence (PL). The results indicate that dilute fractions of bismuth (Bi) with x < 0.025 improve the material quality of this low temperature growth alloys by reducing the density of gallium (Ga) and/or arsenic related defects. The crystal quality starts to degrade at higher Bi concentration probably due to significant amount of Bi-related defects, BiGa. However, the room temperature PL intensity continues to increase with Bi content for the range studied due to greater band-gap offset between GaAs and GaAs1−xBix. Analysis carried out shows no correlation between localization effects and the room temperature PL enhancement.