Defects deteriorate the optical and electronic properties of the cadmium zinc telluride (CZT) single crystal. However, the growth of defects, such as vacancies and precipitation, could not be avoided in the industrial-grade preparation of CZT single crystal. Therefore, it is crucial to explore ways to eliminate defects after growth. This paper employs one-step heat treatment with the CdTe compound as an annealing atmosphere source. After annealing, some large-size Te inclusions are eliminated in CZT crystal, but nano Te precipitates still exist. At the same time, the crystal surface becomes rougher, caused by the thermal migration of Te droplets, dislocation proliferation, and aggregation. Increasing annealing time, dislocations migrate, decompose, and interact with each other to form dislocation walls, stacking faults or terminating at the surface, reducing dislocation etch pit density. In addition, a large number of ordered phases are still found in the crystal. Single annealing with CdTe significantly improved the crystal's optical and electrical properties. After 180 h annealing, the infrared (IR) transmittance of the as-grown wafer increased from 40% to 65%, and resistivity increased from 2.2 × 109 Ω cm to 1.7 × 1011 Ω cm. Compared to reducing the Te precipitation phase, these increasements were mainly dominated by replacing point defects, like Cd vacancies.