DFT methods and the energetic span model have been used to study the mechanism of the N-alkylation of amines with alcohols catalyzed by the PdCl 2 /dppe/LiOH system (dppe = 1,2-Bis(diphenylphosphino)ethane). The energetic results indicate the most favorable pathway is the inner-sphere hydrogen transfer pathway, which consists of initiation of the threecoordinated active alkoxide complex [Pd(PhCH 2 O)(dppe)] + (Int4i) and the catalytic cycle CC1. Initiation of Int4i includes two sequential steps: (i) generation of the three-coordinated active species [Pd(OH)(dppe)] + and [Pd(PhNH)(dppe)] + , (ii) PhCH 2 OH deprotonation with the aid of [Pd(PhNH)(dppe)] + to afford Int4i. Catalytic cycle CC1 includes three sequential steps: (i) β -H elimination of Int4i to generate benzaldehyde and the Pd hydride species [PdH(dppe)] + , (ii) condensation of benzaldehyde with aniline to give the imine, and (iii) imine reduction to supply the amine product and to regenerate Int4i. The calculated turnover frequencies (TOFs) support CC1 is the most favorable, although it is inhibited by the reverse process of PhCH 2 OH deprotonation catalyzed by [Pd(PhNH)(dppe)] + . By calculating the degree of TOF control, we identify the TOF-determining intermediate (TDI) and the TOF-determining transition state (TDTS) in CC1, and find that all the influential intermediates are the off-cycle LiCl − 2 -coordinated complexes in the overall reaction pathway, which leads us to conclude that LiCl − 2 is the TOF-affecting key species. Our additional calculations show that the TOF may be improved by the addition of AgOTf or AgBF 4 , which can scavenge the Cl − and supply the weak ligand OTf − or BF − 4 . Hopefully, these results are useful for further catalyst development.