An integrated gasification combined cycle (IGCC) system has been attracting attention due to its increased energy conversion efficiency and ability to treat various carbonaceous materials. IGCC is also expected to play an important role in the future supply of hydrogen energy. The use of a palladium-based membrane to separate the hydrogen from the synthesis gas stream has been intensively studied due to its exceptional hydrogen-separating capability. However, theoretical research on hydrogen separation is still an unfamiliar area in Korea. First-principle density functional theory was applied in this study to investigate the dissociative adsorption of hydrogen onto a palladium surface. The stability of hydrogen on the surface was theoretically evaluated with various adsorption configurations, partial pressures and temperatures. Further theoretical and experimental studies were also suggested to find a more hydrogen-selective material.