The Horiuti-Polanyi mechanism for ethylene hydrogenation over Pd(111) is examined using first-principle density functional quantum chemical calculations. Cluster and periodic slab DFT- GGA calculations were carried out to determine the modes and energies of chemisorption for a sequence of proposed intermediates, along with overall reaction energies and activation barriers for each of the speculated elementary steps. The DFT-calculated binding energies for ethylene (pi), ethylene (di-sigma), ethyl, vinyl, ethylidyne, atomic oxygen, and atomic carbon on the Pd-19 cluster (and the Pd(111) slab) were found to be -30 (-27), -60 (-62), -130 (-140), -237 (- 254), -620 (-636), -375 (-400), and -610 (-635) kJ/mol. The slab results were found to be w...