The molecular reaction mechanism of hydrodenitrogenation of indole was studied using density-functional theory calculations of the adsorbed o-ethylaniline surrounded by mobile hydrogen atoms. It was found that the hydrogenation of o-ethylaniline occurs through two steps: consisting in redistribution of the p electron density to form multiple partial Mo–C(ring) bonds with the surface upon adsorption, and a subsequent hydrogen attack directed on the aromatic ring or the amine group. The direction of the hydrogen attack and the associated energy barriers determine the rate constants of the early (DDN, direct denitrogenation) and late (HYD, hydrogenation) nitrogen removal steps, and thus rules the selectivity of indole hydrodenitrogenation to ethylcyclohexane or ethylbenzene.