The influence of morphology on the photophysical properties of blend films containing in situ grown CdS and poly(3-hexylthiophene-2,5-diyl) (P3HT), fabricated utilising a metal xanthate single source precursor, is reported. A combination of transient absorption spectroscopy (TAS), transmission electron microscopy (TEM) and photovoltaic device measurements are employed to study the relationship between the efficiency of charge separation, photocurrent generation and thin film morphology. We identify that a significant proportion of the extractable charge originates from the direct excitation of CdS followed by hole-transfer to the P3HT polymer. The yield of this hole-transfer step from the inorganic CdS to the organic polymer is largely unaffected by the film's nanomorphology, while the dissociation of P3HT excitons into free charges at the CdS:P3HT interface is found to be strongly dependent on this parameter with high yields of charge transfer only being achieved at high CdS loadings. The present study elucidates design rules for the optimization of hybrid inorganic–organic solar energy conversion devices.