To understand the initial steps of Fe-based Fischer−Tropsch synthesis, systematic periodic density functional theory computations have been performed on the single-atom stepped Fe(710) surface, composed by p(3 × 3) Fe(100)-like terrace and p(3 × 1) Fe(110)-like step. It is found that CO direct dissociation into surface C and O is more favored kinetically and thermodynamically than the Hassisted activation via HCO and COH formation. Accordingly, surface O removal by hydrogen via H 2 O formation is the only way. On the basis of surface CH x hydrogenation (x = 0, 1, 2, 3), surface CH x + CH x coupling and CO + CH x insertion resulting in CH x CO formation followed by C−O dissociation, surface C hydrogenation toward CH 3 formation is more favored kinetically than the formation of CH x -CH x and CH x CO, as well as thermodynamically. Starting from CH 3 , the formation of CH 4 and CH 3 CO has similar barriers and endothermic reaction energies, while CH 3 CO dissociation into CH 3 C + O has low barrier and is highly exothermic. Therefore, turning the H 2 /CO ratio should change the selectivity toward C−C formation and propagation.