Abstract: Motivated by recent experimental observations of Tongay et al. [Nano Lett. 12, 5576 (2012)] we show how the electronic properties and Raman characteristics of single layer MoSe2 are affected by elastic biaxial strain. We found that with increasing strain: (1) the E' and E '' Raman peaks (E-2g and E-1g in bulk) exhibit significant redshifts (up to similar to 30 cm(-1)), (2) the position of the A'(1) peak remains at similar to 180 cm(-1) (A(1g) in bulk) and does not change considerably with further strain, (3) the dispersion of low energy flexural phonons crosses over from quadratic to linear, and (4) the electronic band structure undergoes a direct to indirect band gap crossover under similar to 3% biaxial tensile strain. Thus the application of strain appears to be a promising approach for a rapid and reversible tuning of the electronic, vibrational, and optical properties of single layer MoSe2 and similar MX2 dichalcogenides. DOI:10.1103/PhysRevB.87.125415