Adsorption of CO on nanosize Pd particles was studied theoretically by density functional method and spectroscopically by means of infrared reflection absorption spectroscopy (IRAS) and sum frequency generation (SFG). A density functional approach was applied to three-dimensional crystallites of about 140 atoms. The model clusters were chosen as octahedral fragments of the face centered cubic (fcc) bulk, exhibiting (111) and (001) facets. Bare and adsorbate-decorated cluster models were calculated with Oh symmetry constraints. Various types of adsorption sites were inspected: 3-fold hollow, bridge, and on-top positions at (111) facets; 4-fold hollow and on-top sites at (001) facets; bridge positions at cluster edges; on-top positions at cluster corners; and on single Pd atoms deposited at regular (111) facets. Adsorption properties of the relatively small regular cluster facets (111) and (001) are calculated similar to those of corresponding ideal (infinite) Pd surfaces. However, the strongest CO bonding...