The conjugative ability of the λ 5 -PdC bond has been compared to its λ 3 -PdC counterpart at the MP2/6-31G*//MP2/6-31G* level of theory, using isodesmic reaction energies. Investigating heterobutadienes, it has been observed that compounds containing a λ 3 -PdC bond show similar delocalization energy as those with CdC units. As for λ 5 -phosphabutadienes, however, stabilization is achieved only in the case of C substitution. This behavior has been rationalized by perturbation theory arguments with the conclusion that while for the λ 3 -PdC and CdC bonds a two-way interaction, for the λ 5 -PdC system a one-way interaction is operational. Comparing cyclic systems containing λ 3 -and λ 5 -PdC bonds, similar structures (bond lengths) and stabilizations (as concluded from bond separation and homodesmic reaction energies) were obtained for six-membered rings including benzene and other rings containing one and three (symmetrically arranged) phosphorus atoms. The four-membered rings (1λ 3 ,3λ 3 -and 1λ 5 ,3λ 5 -diphosphacyclobutadienes), however, show completely different behavior, since the λ 5 -P derivative does not show destabilization upon ring formation and has equal bond lengths, while λ 3 -P rings are clearly antiaromatic. Rationalization has been given in terms of the differences in the one-way and two-way conjugative interactions.