Vanadium(III) thiolate complexes, [V(PS3'')(Cl)]- [1a; PS3'' = P(C6H3-3-Me3Si-2-S)3(3-)] and [V(PS3')(Cl)]- [1b; PS3' = P(C6H3-5-Me-2-S)3(3-)], were synthesized and characterized. Complex 1a serves as a precursor for the catalytic reduction of hydrazine to ammonia. The spectroscopic and electrochemical studies indicate that hydrazine is bound and activated in a V(II) state.