We have studied the influence of iron impurity, and the effects of annealing on KTiOPO4 single crystals. It was found that in high-power second harmonic generation, the iron concentration should be minimized. Annealing at 800-degrees-C caused the optical absorption edge to shift 5-10 nm towards shorter wavelengths, and for undoped crystals, the optical transmittance was also increased. Annealing in atmospheres of increasing oxygen concentration increased the transparency. A high recovery capability against X-ray irradiation damage was also obtained after annealing. The measured full width at half-maximum of the X-ray diffraction (800) peak was apparently decreased in annealed crystals.