The hydrodehalogenation (HDH) of halophenols is efficiently catalyzed by palladium supported on high surface ceria (Pd/CeO2) under mild conditions (35 °C, 1 atm H2). A combination of NMR, DRIFTS, Raman spectroscopy and XPS studies as well as HDH kinetics of substituted halobenzenes suggest the reaction proceeds mainly via a sequence of dissociative adsorption of phenolic hydroxyl onto the support, oxidative addition of Pd into the C-halogen bond and reductive elimination to give phenol and hydrogen halide. The dissociative adsorption of -OH group onto oxygen vacancies of the ceria support results in an electron-rich intermediate that facilitates the turnover-limiting reductive elimination step. In contrast, the direct pathway catalyzed by Pd without dissociative adsorption of the reactants on the support takes place at a slower rate. The mechanistic insights gained in this study were used to modify reaction conditions for enabling HDH of recalcitrant halides such as fluorides and iodides.