High-temperature annealing (HTA), a process step prior to vapor cadmium chloride (VCC) treatment, has been found to be useful for improving the crystallinity of CdTe films and the efficiency of ultra-thin CdTe solar cells. Scanning electron microscopy, optical absorption, photoluminescence measurements and analyses on photoluminescence results using spectral deconvolution reveal that the additional HTA step produces substantial grain growth and reduces grain boundary defects. It also reduces excessive sulfur diffusion across the junction that can occur during the VCC treatment. The HTA step helps to produce pinhole-free CdTe films and reduce electrical shorts in ultra-thin CdTe solar cells. An efficiency of about 11.6% has been demonstrated for ultra-thin CdS/CdTe solar cells processed with HTA step. Published by Elsevier B.V.