DFT calculations on palladium(II) methyl complexes incorporating P/N ligands demonstrate that CO activation in the presence of competing ligands, such as CH3CN or C2H4, occurs through an associative mechanism involving CO/ligand exchange, followed by migratory insertion of CO into the PdMe bond. Recent investigations into the PdII coordination of CO and C2H4 and their subsequent insertion into the PdMe bonds of complexes of the type [PdMe(iminophosphine)(NCMe)]+ are reported.