Abstract: The demand of a full solid-state cooling technology based on magnetocaloric and thermoelectric effects has led to a growing interest in screening candidate materials with high-efficiency cooling performance, which also stimulates the exploration of magnetocaloric/thermoelectric hybrid cooling materials. A series of Gd/Bi0.5Sb1.5Te3 composites was fabricated in order to develop the hybrid cooling technology. The chemical composition, phase structure and diffusion kinetics across the reaction layers in Gd/Bi0.5Sb1.5Te3 composites were analyzed at different reaction temperatures. Micro-area elemental analysis indicates that the formation of interfacial phases is dominated by the diffusion of Gd and Te while the diffusion of Bi and Sb is impeded. The interfacial phases, including GdTe2, GdTe3, and intermediate phases GdTex, are identified by atomic-resolution electron microscopy. The concentration modulation of Gd and Te is adapted by altering the stacking of the Te square-net sheets and the corrugated GdTe sheets. Boltzmann-Marano analysis was applied to reveal the diffusion kinetics of Gd and Te in the interfacial layers. The diffusion coefficients of Te in GdTe2 and GdTe3 are much higher than that of Gd while in GdTe the situation is reversed. This study provides a clear picture to understand the interfacial phase structures down to an atomic scale as well as the interfacial diffusion kinetics in Gd/Bi0.5Sb1.5Te3 hybrid cooling materials.