Multiconfiguration self‐consistent‐field calculations have been carried out on all the valence states, low‐lying rydberg states, and charge‐transfer states of Cd2. Like the other Group IIb dimers studied thus far, the lowest excimer level was found to be a 3Πg metastable state that acts as a reservoir for molecular excitation energy. Strong absorptions between this reservoir state and a bound 3Πu charge‐transfer state are predicted in the vicinity of 470 nm. Weaker, but still significant absorptions, are predicted between the laser state (3Σ+u) and a repulsive 3Σ+g state at the same wavelength. The predicted absorptions could seriously impair laser applications of Cd2 and CdHg.