Ceria (CeO2) has recently been found to be a promising catalyst in the selective hydrogenation of alkynes to alkenes. This reaction occurs primarily on highly dispersed metal catalysts, but rarely on oxide surfaces. The origin of the outstanding activity and selectivity observed on CeO2 remains unclear. In this work, we show that one key aspect of the hydrogenation reaction-the interaction of hydrogen with the oxide-depends strongly on the presence of O vacancies within CeO2. Through infrared reflection absorption spectroscopy on well-ordered CeO2(111) thin films and density functional theory (DFT) calculations, we show that the preferred heterolytic dissociation of molecular hydrogen on CeO2(111) requires H-2 pressures in the mbar regime. Hydrogen depth profiling with nuclear reaction analysis indicates that H species stay on the surface of stoichiometric CeO2(111) films, whereas H incorporates as a volatile species into the volume of partially reduced CeO2-x (111) thin films (x similar to 1.8-1.9). Complementary DFT calculations demonstrate that oxygen vacancies facilitate H incorporation below the surface and that they are the key to the stabilization of hydridic H species in the volume of reduced ceria.