Recent experiments of H 2 adsorption on Pd(111) [T. Mitsui et al., Nature (London) 422, 705 (2003)] have questioned the classical Langmuir picture of second order adsorption kinetics at high surface coverage requiring pairs of empty sites for the dissociative chemisorption. Experiments find that at least three empty sites are needed. Through density functional theory, we find that H 2 dissociation is favored on ensembles of sites that involve a Pd atom with no direct interaction with adsorbed hydrogen. Such active sites are formed by aggregation of at least 3 H-free sites revealing the complex structure of the ''active sites.'' DOI: 10.1103/PhysRevLett.93.146103 PACS numbers: 68.43.Bc, 68.37.Ef, 82.45.Jn, 82.65.+r Under operating conditions, heterogeneously catalyzed chemical reactions take place on surfaces with dense layers of adsorbates. In order to adsorb on such a surface the reactant molecules must find empty surface sites (active sites) created either by one missing adsorbate (vacancy) or by aggregates (ensembles) of vacancies. In the case of H 2 dissociation on Pd-a process of interest in many industrial reactions, including hydrogenation and fuel cell technologies -a recent scanning tunneling microscopy (STM) study [1] has revealed that the classically assumed mechanism where diatomic molecules require ensembles of two empty sites is too simplistic [1]. Indeed, Mitsui et al. [1,2] have found that near saturation coverage the sites for the facile molecular dissociation on Pd(111) require ensembles of three or more H-free nearest neighbors fcc sites. Holloway [3] has suggested that such an unexpected result could be due to chemical selfpoisoning of the surface originated by adsorbed hydrogen, further hindering the activity by increasing the dissociation barrier. An alternative mechanism involves the suppression of energy dissipation channels of the exothermic dissociation reaction [3]. This in turn could be due to (a) modification of the d-band occupation by adsorbed H that would alter the rate of electron-hole pair generation or (b) by surface stiffening, which would reduce phonon excitations. Clearly, the structure and electronic properties of the hydrogen-free ensembles and their effect on the molecular dissociation are fundamental questions that have not been addressed until now.In this Letter we provide an explanation of the STM observations. In addition, we have been able to determine the detailed structure and geometry of the active ensemble of three sites. Because of the rapid motion of H on the surface, the STM experiments could only determine that the number of sites must be larger than two. The actual geometry of the vacancy ensemble, however, is not directly available. The nonobservation of static (in the time scale of seconds) sites of three vacancies surrounding an hcp hollow site (labeled V H ), however, indicates that this site cannot be the active one in the H 2 dissociation. We show that this is indeed the case and that the active site must contain at least one Pd atom without a dir...