Abstract: We provide experimental evidence for the existence of ferromagnetism in bilayers of Pd/C-60 which is supported by theoretical calculations based on density functional theory (DFT). The observed ferromagnetism is surprising as C-60 and Pd films are both non-ferromagnetic in the non-interacting limit. Magnetization (M) versus applied field (H) data acquired at different temperatures (T) show magnetic hysteresis with typical coercive fields (H-c) on the order of 50 Oe. From the temperature-dependent magnetization M(T) we extract a Curie temperature (T-c >= 550 K) using Bloch-like power law extrapolations to high temperatures. Using DFT calculations we investigated all plausible scenarios for the interaction between the C-60 molecules and the Pd slabs, Pd single atoms and Pd clusters. DFT shows that while the C-60 molecules are nonmagnetic, Pd films have a degenerate ground state that subject to a weak perturbation, can become ferromagnetic. Calculations also show that the interaction of C-60 molecules with excess Pd atoms and with sharp edges of a Pd slab is the most likely configuration that render the system ferromagnetic Interestingly, the calculated charge transfer (0.016 e per surface Pd atom, 0.064 e per Pd for intimate contact region) between C-60 and Pd does not appear to play an important role. (C) 2013 Elsevier B.V. All rights reserved.