The energy band alignment between pulsed-laser-deposited TiO2 and FTO was firstly characterized using high-resolution X-ray photoelectron spectroscopy. A valence band offset (VBO) of 0.61 eV and a conduction band offset (CBO) of 0.29 eV were obtained across the TiO2/FTO heterointerface. With annealing process, the VBO and CBO across the heterointerface were found to be -0.16 eV and 1.06 eV, respectively, with the alignment transforming from type-I to type-II. The difference in the band alignment is believed to be dominated by the core level down-shift of the FTO substrate, which is a result of the oxidation of Sn. Current-voltage test has verified that the band alignment has a significant effect on the current transport of the heterojunction.