Methanol decomposition on Pd(111) at 300 and 400 K was studied in situ from 5 × 10-7 to 0.1 mbar by combining vibrational sum frequency generation (SFG) and X-ray photoelectron spectroscopy (XPS). Two competing decomposition pathways, i.e., dehydrogenation of CH3OH to CO and H2 and methanolic C−O bond scission, were observed by monitoring the time-dependent evolution of CO/CHxO and of carbonaceous deposits CHx (x = 0−3) via their vibrational and photoemission characteristics. Quantification of carbon-containing species was performed by XPS, while the preferred binding site of CHx was determined by SFG using CO as probe molecule for postreaction adsorption. In contrast to previous reports, Pd(111) was found to be quite active for methanolic C−O bond scission. The CHx formation rate strongly increased with pressure and temperature, leading to immediate catalyst deactivation at 0.1 mbar and 400 K. The combined SFG/XPS data suggest that the carbonaceous residues are highly dehydrogenated, such as CH or carbon...