The photoinduced addition of 0, onto the unsaturated cluster Pd,(dppm),C~~+ (as a CF,CO,-salt) in acetonitrile is reported. The final product ~d , ( d~~m ) , ( O , )~ (~( 0 , ) = 838 and 866 cm-') is formed in a multistep fashion in which two photochemical intermediates are observed (presumably ~d,(dppm),(0,)(~0)~+ and ~d , ( d~~m ) , ( 0 , )~+ ) .No X-ray structure could be obtained, but numerous spectroscopic findings demonstrate that 0, binds the Pd, center as a peroxo-02, and acts as a two-electron donor that triply bridges the metal atoms (forming a 44-electron cluster). The very small excited state lifetimes (between 25 and 35 ? 10 ps) obtained by picosecond flash photolysis indicate that the primary photoreaction is unimolecular, and demonstrate that the first photochemically added 0, molecule must be preassembled in the excited state prior to any photoinduced transformation. This ~d , ( d~~m ) , C 0~+ . . . 0 , ground state complex is responsible for the photoinduced production of the bisdioxygen compound and can be observed by UV-visible spectroscopy. The low efficiency of the photoreaction (quantum yield (0) = 0.033 ? 0.004) is explained by the very short excited state lifetime at 298 K, and the competition of 0, with solvent molecules to occupy the unsaturated site of the empty cavity in ~d , ( d~~m ) ,~0~+ (i.e., ground state guest-host chemistry). The binding constant for 0, with ~d , ( d~~m ) ,~0~+ is roughly estimated to range between 1 and 730 M-I in the ground state and is considered to be weak.