High quality diamond thin films were deposited on different substrates at temperatures from 300 to 1000 °C by the microwave plasma enhanced chemical vapor deposition (MPCVD) system. The quality of deposited diamond films was improved by adding oxygen in the gas mixtures. Different ratios of methane to oxygen concentration in hydrogen at different temperatures have been studied. At high temperatures (800–1000 °C), the addition of oxygen will not only enhance the growth rate of deposited films but also extend the region of diamond formation. At low temperatures (<500 °C), the oxygen plays an important role in diamond film growth by preferentially etching the non-diamond carbon. Without the addition of oxygen, the films deposited at high temperatures (>900 °C) were either graphitic or diamond containing a large amount of graphitic or amorphous carbon and at low temperatures (<500 °C) were white, soot-like coatings which were easily scraped off. The quality of the deposited films was characterized by Raman spectroscopy and scanning electron microscopy.