The Franz-Keldysh effect in the two-photon absorption process in the space charge region of an Hg0.695Cd0.305Te photodiode is demonstrated. By employing as the exciting light source a pulsed laser beam at λ0=7.92μm from an optical parametric generator and difference frequency generator pumped by a pico-second Nd:YAG laser, the photo-response has been measured as a function of the excitation intensity. The peak intensity of the pulsed photo-response shows a quadratic dependence on the incident intensity. A relationship between the pulsed photo-voltage and the incident optical intensity has been established with an equivalent RC circuit model to derive the degenerate single beam two-photon absorption coefficient. The results show that the two-photon absorption coefficient within the space charge region of the photodiode is about a factor of 2.7 higher than that outside the space charge region, implying an electric field induced enhancement of the two-photon absorption. This indicates that the Franz-Keldysh effect exists not only in the one-photon absorption process but also in the two-photon absorption process.