Highly reproducible and reversible thermochromic nature of dihydrated methylammonium lead iodide is found. A wide bandgap variation of the material (鈭? eV) is detected between room temperature and 60 掳C under ambient condition as a result of phase transition caused by moisture absorption and desorption. In situ X-ray diffraction and Fourier transform infrared spectroscopy studies are performed to understand the mechanistic behavior during the phase transition. This thermochromic property is further explored as absorber material in mesostructured solar cells. Temperature-dependent reversible power conversion efficiency greater than 1% under standard test conditions is demonstrated; revealing its potential applicability in building integrated photovoltaics.