To eliminate metallurgical defects and improve microstructures in laser powder bed fusion (LPBF) β-solidifying γ-TiAl alloys, circular beam oscillation technology was used to fabricate a Ti–43Al–9V-0.5Y alloy in this work. The metallurgical defects and microstructures under conventional linear (non-oscillating) scanning and circular oscillating scanning are first studied in comparison. Then, the microstructural evolution and defect suppression mechanisms under circular oscillating scanning are revealed based on the melt flow behavior. In contrast to the non-oscillating scanning, circular oscillating scanning can better eliminate the pores and cracks of LPBFed Ti–43Al–9V-0.5Y alloy. As the oscillating velocity is decreased, the crack density decreases and the microstructure changes from columnar to equiaxed grains. The crack-free samples with a relative density of 99.98% and fine equiaxed grains are obtained as the oscillating velocity is less than or equal to 100 mm/s. The microhardness (473–581 Hv) of the non-oscillating samples is higher than that (440–487 Hv) of the oscillating samples. The room-temperature compressive strengths (∼1222 MPa and ∼1931 MPa) and tensile strength (∼253 MPa) of the crack-free oscillating LPBFed samples are superior to those of the as-cast counterparts. The suppression of pores is ascribed to the improved keyhole stability, enhanced melt convection as well as escape of bubbles under circular beam oscillation. When the oscillating velocity is less than or equal to 100 mm/s, the sufficient stirring effect of the laser beam promotes the formation of fine equiaxed grains and the reduction of brittle B2 phase content, which effectively inhibits cracking.