In this paper, we have focused on the formation and the role of the CdS/CdTe interface on CdTe solar cells. The devices were made using chemical bath deposited (CBD) CdS on SnO2/glass substrates and the CdTe was deposited by close spaced sublimation (CSS) and subsequently CdCl2 treated and annealed. Compositional analysis showed considerable interdiffusion of Te and S as well as CI accumulation at the interface. Micro-photoluminescence (PL) analysis reveals sulfur accumulation at the grain boundaries and a graded CdSxTe1-x alloy at the interface. Our analysis leads us to conclude that CI accumulation and anion vacancies result in a one sided n(+)-p junction. This model could explain the collection loss in the CdS layer, seen in the spectral response of CdS/CdTe devices.