Thin silicon layers have been deposited from silane diluted with hydrogen. The dilution ratio R (R = [H-2]/[SiH4]) has been varied between R = 0 and R = 40. The structural properties of Si:H films have been studied using transmission electron microscopy imaging and Raman spectroscopy. The phase evolution from the amorphous phase into the mixed and eventually microcrystalline phase strongly depends on the hydrogen dilution. The initiation of the microcrystalline growth occurs between R = 20 and R = 25. The phase transition becomes more abrupt with increasing hydrogen dilution. Optoelectronic properties of the layers have been determined. Increasing hydrogen dilution results in films with increasing effective defect density and Urbach energy, which is related to inbomogeneous growth. The charge deep-level transient spectroscopy technique (Q-DLTS) was applied for the first time on hydrogen diluted thin silicon films in order to investigate the energy distribution of the defect states in these layers as a function of the dilution ratio R. The Q-DLTS spectra indicate a difference in defect-state distribution when the films evolve from the amorphous phase into the microcrystalline phase. (c) 2005 Elsevier B.V. All rights reserved.