The formation of the metal−oxide interface in the Pd/Co 3 O 4 (111) model catalyst was investigated by means of density functional theory (DFT), synchrotron radiation photoelectron spectroscopy (SRPES), and scanning tunneling microscopy (STM). The electronic metal−support interaction results in a substantial charge transfer at the interface yielding atomically dispersed Pd 2+ species and partially oxidized Pd δ+ aggregates coupled with a partial reduction of Co 3 O 4 (111). Atomically dispersed Pd 2+ species at the fcc site on the Co 3 O 4 (111) surface were found to be the most energetically favorable configuration. In comparison to the dispersed Pd 2+ species, the formation of Pd dimers, trimers, and tetramers was found to be less favorable. The analysis of the Bader charges revealed a substantial net positive charge on Pd atoms in dimers, trimers, and tetramers which is consistent with the formation of partially oxidized Pd δ+ aggregates detected by SRPES. The analysis of the charge distribution in Co 3 O 4 (111) revealed a partial reduction of Co 3+ to Co 2+ cations in the first and second Co layers. According to DFT, Pd δ+ aggregates are prone to oxidation to PdO in the presence of O 2 and H 2 O. The partially oxidized Pd δ+ and Pd 4 O x aggregates form 1 to 2 monolayer thick clusters which serve as nuclei for the growth of metallic Pd 0 nanoparticles. At high Pd coverage, Pd nanoparticles coalesce resulting in the growth of two-dimensional islands that densely cover the Co 3 O 4 (111) substrate.