The electronic structure and bonding in $Ti_2Pd$ and $Pd_2Ti$ alloys with and without hydrogen as an interstitial atom were studied by performing extended Huckel tight-binding band calculations. The hydrogen absorption near an octahedral site is found to be a favorable process in $Ti_2Pd$ rather than in $Pd_2Ti$. In metal hydrides, the metal-hydrogen bonding contribution is crucial to the stability of the system. The stronger interaction of hydrogen with Ti atoms in $Ti_2PdH_2$ than with Pd atoms in $Pd_2TiH_2$ is analyzed by perturbation theory.