The nature of bonding at the interface between deposited silver and (0 0 1) surface of α-Al 2O 3 for both Al-terminated and OH-terminated has been investigated using a periodic ab initio method. Substantial inter-planar relaxations within the alumina were found at both the interfaces and the bulk. The periodic calculation with Ag deposition shows that 10% of Ag loading on alumina results maximum stability. Now, this is known that, the clean alumina surface only exists at UHV condition and normally the alumina surface prefers to stay hydroxylated. We have therefore compared the silver bonding over hydroxylated alumina surface and confirmed the fact that the hydroxylated surface binds silver weakly in comparison to the clean surface and it recommends that the silver cluster over the hydroxylated surface begins to join in to form three-dimensional nuclei. The deposited Ag forms a cluster on top of the alumina surface. The Ag atomic packing was monitored to rationalize the role of packing on activity of silver. Three low-index Ag surfaces (1 0 0), (1 1 0) and (1 1 1) are investigated via the ab initio density functional calculations with ultrasoft potentials. We have monitored the relation between Ag atomic packing and its electronic properties. The results show that the structural and electronic property of Ag deposited on alumina surface depends significantly on atomic packing. Ag(1 1 0) over clean alumina surface shows highest surface energy and smallest work function, whereas for the OH-terminated surface it is the Ag(1 1 1). The results are discussed in view of the existing experimental data and models of metal–oxide interface.