We investigated the effects of homogeneous electron beam (EB) irradiation and thermal annealing treatments on the structural, optical, and transport properties of bismuth telluride thin films. Bismuth telluride thin films were prepared by an RF magnetron sputtering method at room temperature. After deposition, the films were treated with homogeneous EB irradiation, thermal annealing, or a combination of both the treatments (two-step treatment). We employed Williamson–Hall analysis for separating the strain contribution from the crystallite domain contribution in the x-ray diffraction data of the films. We found that strain was induced in the thin films by EB irradiation and was relieved by thermal annealing. The crystal orientation along c-axis was significantly enhanced by the two-step treatment. Scanning electron microscopy indicated the melting and aggregation of nano-sized grains on the film surface by the two-step treatment. Optical analysis indicated that the interband transition of all the thin films was possibly of the indirect type, and that thermal annealing and two-step treatment methods increased the band gap of the films due to relaxation of the strain. Thermoelectric performance was significantly improved by the two-step treatment. The power factor reached a value of 17.2 μW (cm−1 K−2), approximately 10 times higher than that of the as-deposited thin films. We conclude that improving the crystal orientation and relaxing the strain resulted in enhanced thermoelectric performance.