Complete H–D exchange of butene was reported on a D-absorbed Pd–Au alloy surface. However, its reaction mechanism has not been clarified yet. Here we investigate the reaction of cis-2- and 1-butene on Pd70Au30(110) by means of high-resolution electron energy loss spectroscopy. We demonstrate that both butene isomers are in the π-bonded state and that 1-butene irreversibly converts to cis-2-butene around 250 K. This isomerization accounts for previously observed similar product distributions in the H–D exchange reaction of cis-2- and 1-butene on the D-absorbed Pd70Au30(110) surface. Since the reverse change from cis-2- to 1-butene is not observed at any temperature, we conclude that the H–D exchange proceeds by the dissociative mechanism via vinylic and π-allylic intermediates rather than the Horiuti–Polanyi mechanism.