We have performed for the first time a detailed transmission electron microscopic evaluation of CdTe layers grown on (0001) sapphire substrates by metalorganic chemical vapor deposition. From plan-view observation, it has been found that (111)-oriented CdTe grows on the (0001) sapphire substrates, and that a high density of dislocations and stacking faults are generated in the crystal. Typical dislocation densities are in the range 5 × 108 - 1 × 109cm−2. Several types of dislocations are found as follows: (i) threading dislocations; (ii) dislocation clusters; (iii) dislocation networks. Contrast experiments indicate that most of the dislocations have Burgers vectors of 12a inclined or parallel to the (111) plane. Stacking faults are generated both from the hetero-interface and within the epilayer. The former lie on two of the three equivalent {111} planes, whereas the latter is tetrahedral-shaped, consisting of three stacking faults of vacancy type on the three equivalent {111} planes. The total stacking fault density was estimated to be ≈ 106cm−2. From electron diffraction analysis of cross-sectional specimens, it has been found that the [1120] direction in the sapphire corresponds to the [110] direction in the CdTe layer. In the diffraction patterns, twin-related extra spots are found. Dark-field images taken from one of these spots reveals lamellar twins in the CdTe layer. They often terminate on planes nearly normal to the growth surface. They are generated throughout the epilayer, and their thickness is in the range 5–60 nm. In high resolution electron images, these lamella twins are also observed at an atomic scale. The defect structures described above are very similar to those observed in CdTe on (111)B GaAs.