The reaction of pyridylphosphines with alkyllithium reagents has been investigated using ab initio methods. In earlier experimental studies, it was found that reaction of RLi with R'PPy2 produced a mixture of RPy, R'Py, (R)(Py)PLi, and (R')(Py)PLi; the reaction was assumed to involve "reductive elimination" from an (R)(R')(Py)(2)P- Li+ intermediate. Our calculations show that the R for R' exchange does indeed involve such a species, although it is a transition state rather than an intermediate. Formation of phosphide, however, proceeds by direct attack of the alkyllithium on carbon C2 of a pyridyl group and is more properly designated as a nucleophilic substitution at carbon. Coordination of the pyridyl groups to lithium appears to be important in both reactions.