ABSTRACT As perovskite solar cells approach commercialization, understanding the environmental sensitivities of perovskites during fabrication becomes increasingly important. In this work, the humidity‐dependence of each deposition and annealing step in the anti‐solvent‐free two‐step formamidinium lead iodide fabrication process is investigated in air and N 2 . In‐situ grazing‐incidence wide‐angle X‐ray scattering measurements during spin‐coating indicate that humidity affects the formation and dynamics of intermediate phases in perovskite precursor films. These differences, and those induced by annealing in humidity, impact the structure, morphology, and composition of resultant perovskite films, though the initial performance of solar cells fabricated using these active layers is relatively insensitive to humidity across the range studied. In contrast, stability is maximized in devices with dry‐processed active layers and those terminally annealed in humidity. Spin‐coating of PbI 2 is most environmentally sensitive—needle‐like structures precipitate while spin‐coating in 40% relative humidity leading to significantly reduced photovoltaic performance and device stability. Additionally, films and solar cells fabricated in air appear virtually identical to those fabricated in N 2 . Collectively, these results show that optimal performance and stability of two‐step processed formamidinium lead iodide solar cells is achieved when fabricating active layers in a dry atmosphere or with some humidity during the final anneal.