Angle-resolved two-photon photoelectron spectroscopy has been used to study the normally unoccupied band structure of Pd(111). Photoemission features are studied as functions of excitation photon energy hν, polarization state, and emission angle. Below hν=4.9 eV, photoemission is dominated by excitation of bulk states near the Fermi level of Λ3 symmetry through Λ1 excited states between the Fermi and vacuum level. The kinetic energy of the corresponding spectral peak is found to increase according to 2 hν−Φ, where Φ is the Pd(111) work function. At hν=4.9 eV, a surface state with 0.65±0.1 eV binding energy is found. The dispersion of this state with k∥ is well-described by an effective mass m* equal to the free electron mass me. This state is assigned as the n=1 member of the image potential series of states. The relationship between the dispersion of this state and its position in the (111) projected bulk band gap is discussed.