We carried out first-principles spin-polarized calculations in order to provide comprehensive information regarding the structural, electronic and magnetic properties of the Pd x Zn 1-x O (with x ¼ 0.0625) semiconductor. The highly accurate allelectron full-potential linearized augmented plane wave method was used to calculate total energy and electronic structure of the Pd-doped ZnO semiconductor. The recently developed Wu-Cohen generalized gradient approximation to the exchange correlation functional was adopted. The results indicate that the ferromagnetic ground state originates from the strong hybridization between Pd-4d and O-2p states, which is in agreement with previous studies on 4d doping in wide gap semiconductors. This article shows that 4d transition metals such as palladium may also be considered as candidates to explore new half-metallic ferromagnetism in semiconductors. This study gives new clues to the fabrication of diluted magnetic semiconductors.ß 2011 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim 1 Introduction The possibility of manipulating the spin of the electron, as well as the charge, opens up fascinating routes for processing information and data storage. This is particularly exciting in terms of semiconductor spintronics, where conventional charge-based electronics could be replaced with devices possessing both spin and charge functionality. Dilute magnetic semiconductors (DMS) are being actively investigated in the development of spintronic devices. While there has been much work on the III-V DMS materials, notably (In,Mn)As and (Ga,Mn)As, their ferromagnetic Curie temperatures (T c ) (90 K for (In,Mn)As [1] and 172 K for (Ga,Mn)As [2]) are too low for practical applications. The realization of practical commercial or mobile devices will require the development of semiconductors that can retain their magnetic properties above room temperature. As a result, significant research effort has been focused on developing alternative DMS materials with higher Curie temperatures [3]. In particular, the investigation of ZnO has attracted a great deal of attention because ZnO-based DMS has been viewed as a promising candidate for the realization of a near-or aboveroom-temperature ferromagnetic semiconductors [4].Zinc oxide (ZnO) is a wide band gap semiconductor with optoelectronic properties that make it an attractive candidate