Free electron absorption spectra due to the scattering on optical phonons, acoustic phonons, and ionized impurities are calculated using Haga and Kimura's theory and Tang's two‐mode Callen effective charges taking into account the nonparabolicity of the conduction band and the two‐mode behaviour of the optical phonons of Hg1–xCdxTe. Free hole absorption spectra including both intra‐ and inter‐band absorptions are also calculated. In addition, extinction spectra due to the absorption and scattering of light by precipitates of Te and HgTe in the crystal are included so as to give a good account for the measured below‐gap absorption spectra. Therefore, the specific precipitates, their concentration and size distribution are obtained from the fits to the absorption spectra measured at 100 and 300 K for two samples.