The guest-host chemistry of the Pd3(dppm)3C02+ cluster (dppm = ( ( C~H S )~P ) ~C H~) has been investigated in some detail for a series of inorganic and organic substrates by X-ray crystallography (in two cases), UV-visible (and IR) spectroscopy, and molecular mechanics. The two X-ray crystallography characterized complexes are the [Pd3(dppm)3-CO](PF6)y(CH3)2CO and [Pd3(dppm)3CO](CF3C02)(PF6).2(CH3)2CO, which have been used to obtain model structures of the empty cavity (formed by the six upper dppm-phenyl groups) and filled cavity (by the CF3CO2anion), respectively. The latter was also used as a starting structure for the computations. The binding constants ( K 1 were measured spectroscopically using the Benesi-Hildebrand (B.-H.), Scatchard (Scat), and Scott (Scot) methods for about 20 different substrates. The stoichiometry of the association is found to be 1:l where the K I I values range from 0.07 to 10 000 M-I. The substrate-cluster associations are competitive and reversible for most studied systems. In some cases (nitro, cyano, and diazonium derivatives), very slow thermal reactions have been observed. Further molecular mechanic calculations on the cluster-aromatic associated complexes showed that agostic interactions are possible at the minimum computed energy configuration for the aromatic compounds. Overall, these studies show that the binding strength of a substrate (both organic and inorganic) into the bifunctional cavity (metallic center and hydrophobic section) is found to be related to a combination of parameters. These properties are the substrate charge and ligand strength, and the size and hydrophobic properties of the substrates. Crystal data: [Pd3(dppm)3CO](PF6)2, 173 K, triclinic (PI), a = 13.640(4) A, b = 14.0639(17) A, c = 22.4835(15) A, a = 104.291(7)', 0 = 105.143(17)', y = 99.301(18)', V = 3914.7(13) A3, Z = 2, R = 0.039, R, = 0.037; [Pd3(dppm)3CO](CF3C02)(PF6),293 K,monoclinic(P21),a= 11.0189(10)A,b= 26.6515(19)A,c= 14.4746(14) A, 0 = 99.786(9)', V = 4188.9(6) A3, Z = 2, R = 0.057, R, = 0.053. organic molecules and ions within the cavity of the P d 3 ( d~p m )~-COz+ cluster in a variety of solvents at 298 K. During the course of this work, the X-ray structures of [Pt3(dppm)3CO](X)-(Y).n(CH3)2CO ( x = Y = PF6-, n = 1; x = CF3C02-, Y = PFs-,