A dissociation reaction of (CH3)2S (dimethyl sulfide; DMS) on a Pd capped Mg layer surface has been studied by using Sulfur K-edge Near Edge X-ray Absorption Fine Structure (NEXAFS) technique. The Pd thin film is prepared by two deposition methods, one is vacuum deposition, and the other is DC magnetron sputtering. The surface morphology is observed by Atomic Force Microscopy (AFM). The AFM observation reveals that there are many nano sized particles on the Pd/Mg surface, and an average size of the particle prepared by DC magnetron sputtering is obviously smaller than that prepared by vacuum deposition. NEXAFS analysis reveals that DMS dissociation is weakened on the Pd surface prepared by DC magnetron sputtering and promoted on the Pd surface prepared by vacuum deposition. It seems that any adsorption reactions are promoted on small sized metal particles, however, the DMS dissociation reaction is promoted on the Pd surface prepared by vacuum deposition, which has big sized Pd particles.