Combined X-ray photoelectron and absorption fine spectroscopy (XAFS) investigations on 10 wt % Pd–16 wt % Sb/TiO2 catalyst allow new insight into the impact of the co-component Sb on the active Pd species, which catalyzes the gas-phase acetoxylation of toluene to benzyl acetate. Ex situ Pd 3d XPS and Pd L-edge XANES studies indicate the presence of an excess electron charge on metallic Pd species (more 4d electrons than in Pd metal) formed after several hours of stream. This observation was explained by the electron transfer from metallic Sb incorporated into the Pd bulk to the neighboring Pd atoms. TEM-EDX analysis confirms the presence of intermixed Pd–Sb particles with an atomic ratio of between 5 and 6 in the most active catalysts and of 3 in deactivated samples. In situ Sb-K-edge XAFS investigations provide evidence that the Pd–Sb interaction is more pronounced under reaction feed than in the ex situ samples.