In this Letter the interaction of Li atoms with terrace sites of MgO(001) surfaces is characterized by combining EPR spectroscopy with theoretical calculations. The Li atoms adsorbed to MgO terrace sites show a reduction of the isotropic hyperfine coupling constant by approximately 50% with respect to Li atoms in the gas phase. In combination with theoretical calculations it can be shown that this reduction of the hyperfine coupling constant is not due to a charge transfer between Li and MgO but can be understood by a polarization of the Li atoms which are essentially neutral. (C) 2007 Elsevier B.V. All rights reserved.