Stabilization of the electrical resistivity of CdSe thin films has been studied by air oxidation at room temperature (300 K). Depending on the film thickness, the dark-and photoconductance of the films stabilize over 12 to 25 days of air exposure. The variation of photosensitivity of the films has been explained on the basis of inherent slow recombination states (k centres) and oxygen-assisted conversion of selenium vacancy, cadmium vacancy, cadmium interstitial (V Se -V Cd -Cd i ) to cadmium vacancy-cadmium interstitial (V Cd -Cd i ) complexes. The variation of oxygen adsorption with film thickness is studied. The temperature variation of dark-and photoconductance measurements in these films reveals a thermal quenching of photoconductivity at about 265 K. The k centres are located at about 0.23 eV above the top of the valance band. A selenium vacancy-related level is revealed at about 0.12 eV below E c . This level disappears as a result of long time exposure of the films to atmospheric oxygen. An oxygen-assisted excitonic transition is revealed along with the band edge transition in the spectral distribution of photocurrent of oxygen-adsorbed stabilized films.