The adsorption and reaction of methanol and formaldehyde on two-dimensional PdZn alloys on a Pd(111) surface were studied as a function of the Zn content in the alloy in order to understand the role of Zn in Pd/ZnO catalysts for the steam reforming of methanol (SIRM). Temperature programmed desorption (TPD) and high resolution electron energy loss spectroscopy (HREELS) data show that Zn atoms incorporated into the Pd(111) surface dramatically decrease the dehydrogenation activity and alter the preferred bonding sites for adsorbed CO, CH3O, and CH2O intermediates. The experimental results obtained in this study are consistent with previous theoretical studies of this system and provide new insight into how Zn alters the reactivity of Pd.