In this paper we present the results of a forward‐biased capacitance measurement on palladium silicon Schottky diodes. The data are interpreted in terms of the interface state density by taking into account the effect of series resistance and using Shockley–Read–Hall statistics. Exchange of charge between the metal and the interface states is included in the model. For the as‐deposited sample, an effective state is postulated to lie opposite the metal Fermi level with a concentration of 1×1012/cm2. Upon annealing and formation of palladium silicide, the density of states decreases by a factor of 2 and changes occur in the capture and emission time constants.