Thermopower measurements in the range of 300-650 K along with room temperature optical absorption and electrical resistivity studies have been performed on indium tin oxide (ITO) and manganese doped indium tin oxide (Mn:ITO) thin films grown by reactive DC sputtering. The thermopower of the films measured in Ar ambient displayed irreversible changes attributable to oxygen loss. Thermopower, carrier concentration and resistivity of the films have been found to depend on oxygen vacancies and Mn concentration. The observations have been substantiated with optical absorption and room temperature electrical resistivity results. It has also been observed that band gap tuning in these films is possible by the introduction of Mn as well as oxygen vacancies. (C) 2009 Elsevier B.V. All rights reserved.