Hydrogenated microcrystalline silicon-germanium (μc-SiGe:H) films are fabricated by radio-frequency plasma-enhanced chemical vapor deposition (RF-PECVD). The optical absorption coefficient and the photosensitivity of the μc-SiGe:H films increase dramatically by increasing the plasma power and deposition pressure simultaneously. Additionally, the microstructural properties of the μc-SiGe:H films are also studied. By combining Raman, Fourier transform infrared (FTIR) and X-ray fluoroscopy (XRF) measurements, it is shown that the Ge-bonding configuration and compactability of the μc-SiGe:H thin films play a crucial role in enhancing the optical absorption and optimizing the quality of the films via a significant reduction in the defect density.