Free-exciton magnetoreflectance and magnetization are used to study the p-d exchange interaction of Cd 1Ϫx Cr x S ͑xϭ0.0024, 0.0031, and 0.0033͒. Magnetization data are well described by a simple crystal-field model taking into account static, tetragonal Jahn-Teller distortion suffered by Cr 2ϩ ions, as well as the hexagonal crystal field of CdS. In effect, a strong magnetic anisotropy of a single Cr 2ϩ ion was found. From the heavy-hole exciton splitting, and the Cr 2ϩ ion spin deduced from magnetization data, the p-d exchange parameter was evaluated as N 0 ϭϩ0.48Ϯ0.05 eV, using the previously obtained s-d exchange parameter: N 0 ␣ϭϩ0.22Ϯ0.01 eV. These exchange parameters provide a reasonable description of the exciton splittings for a magnetic field oriented along or perpendicularly to the crystal hexagonal axis.