Determining cloud thermodynamic phase using infrared satellite observations typically requires a priori assumptions about relationships between cloud phase and cloud temperature. In this study, limitations of an approach using two infrared channels with moderate spectral resolutions are demonstrated, as well as the potential for improvement using channels with higher spectral resolution. The Moderate Resolution Imaging Spectroradiometer (MODIS) instrument uses a bispectral infrared cloud phase determination algorithm. MODIS observations during January 2005 show that approximately 23% of cloudy pixels are classified as mixed or unknown cloud phase; this increases to 78% when only cloud-top temperatures between 250 and 265 K are considered. Radiative transfer simulations show that the bispectral algorithm has limited ability to discriminate between water and ice clouds in this temperature range. There is also the potential for thin ice clouds at colder temperatures to be misclassified as water clouds. In addition, sensitivities to cloud particle size and cloud height can be larger than sensitivities to cloud phase. Simulations suggest that phase sensitivity may be higher with hyperspectral observations such as those from the Atmospheric Infrared Sounder (AIRS). The AIRS brightness temperature differences between channels at 8.1 and 10.4 μm show phase sensitivities of at least 0.5 K, regardless of cloud particle size, cloud-top temperature, or cloud height. They also demonstrate reduced sensitivity to atmospheric temperature and water vapor variability. The reduced sensitivity of AIRS radiances to these physical quantities shows that hyperspectral sounders will serve an important role in refining estimates of cloud phase.