Combined real time measurements of hydrogen desorption and absorption show that both processes may be induced simultaneously by CO adsorption on a hydrogen-covered Pd surface. The induced absorption is found to be a kinetic effect, where the amount absorbed depends on the hydrogen desorption rate and the CO adsorption rate. In addition to simple site blocking, adsorbed CO induces an increase in the hydrogen desorption energy and an activation barrier for hydrogen dissociation. Both increase linearly with CO coverage for theta(CO) > 0.18 ML. Below this coverage, the hydrogen dissociation is non-activated. (C) 1998 Elsevier Science B.V. All rights reserved.