Polarization modulation infrared reflection absorption spectroscopy (PM-IRRAS) was employed to investigate the interaction of cholesterol with the headgroups of dimyristoylphosphatidycholine (DMPC) molecules under a static electric field. DMPC/cholesterol (7:3 molar ratio) mixtures form a bilayer on a Au(111) electrode surface by fusion and spreading of small unilamellar vesicles. PM-IRRAS experiments provided detailed information concerning the conformation and hydration of headgroups of DMPC bilayers in the presence and absence of 30% cholesterol. The presence of 30% cholesterol increases the space between the headgroups of DMPC molecules and hence increases the hydration of the DMPC/cholesterol mixed bilayer. The conformational state of the headgroups of DMPC molecules in the mixed bilayer is also significantly changed. The phosphate group is closer to the surface compared with the pure DMPC bilayer. The conformation of the -O-C-C-N moiety changes from gauche to trans in the presence of cholesterol.