As-grown AgGaSe 2 crystals contain a high density of precipitates which cause optical scattering. These can be removed by a postgrowth heat-treatment process in the presence of Ag 2Se. Often the optical quality after heat-treatment varies from one crystal to another. A video technique for imaging near-IR light scattering in heat-treated AgGaSe 2 crystals has made it possible to assess the density of optical defects persisting after the usual single step heat-treatment process. Identification of the chemical composition of the precipitates, and having an accurate assessment of the density remaining after a single heat-treatment step, has led to the development of a more effective multi-step heat treatment process. With this improvement, optical scattering losses have been reduced by at least a factor of four. The known condensed phase equilibria in the AgGaSe system accounts for this behavior, predicting the direction in which chemical reactions occur during growth and heat-treatment, but it does not account for the subtle effects encountered in this system.