The observed asymmetric behaviour of mixing of NaCd liquid alloys around equiatomic composition with smaller negative values for free energy of mixing at compound forming concentration, i.e. GMXS = -4.9KJ at Ccd =0.66 has aroused our interest to undertake a theoretical investigation of this system.A simple statistical mechanical theory based on compound formation model has been used to investigate the energetics of formation of intermetallic compound Cd2Na in the melt through the study of entropy of mixing.Besides, the interionic interactions between component atoms Na and Cd of the alloys have been understood through the study of interionic pair potential фij(r), calculated from pseudopotential theory in the light of CF model.Our study of фij(r) suggest that the effective interaction between Na-Na atoms decreases on alloying with Cd atom, being minimum for compound forming alloy( Cd 0.66 Na 0.34 ).The nearest neighbor distance between Na-Na atoms does not alter on alloying. Like wise Na-Na, effective interaction between Cd-Cd atom decreases from pure state to NaCd alloys, being smaller at compound forming concentration Cd 0.66 Na 0.34.The computed values of SM from pseudopotential theory are positive at all concentrations, but the agreement between theory and experimental is not satisfactory. This might be happening due to parameterisation of σ3 and Ψcompound.