The reaction of the diphosphine–phosphine oxide ligand {[o-iPr2P-(C6H4)]2P(O)Ph} with Pd(PtBu3)2 proceeds with cleavage of the Ph–P(O) bond to give an original κP,P(O),P-pincer complex. According to DFT calculations, this oxidative addition occurs via a three-center P,Cipso,Pd transition state.