Dihydrogen is easily activated by a scandium terminal imido complex containing the weakly coordinated THF. The reaction proceeds via a 1,2-addition mechanism, which is distinct from -bond metathesis mechanism reported to date for rare-earth metal mediated H2 activation. This reaction yields a scandium terminal hydride, which is well structurally characterized, being the first one to date. The reactivity of this hydride is reported with unsaturated substrates, further enlightening the existence of the terminal hydride complex. Interestingly, the H2 activation can be reversible. DFT investigations further shed light on the mechanistic aspects of the reactivity of the scandium anilido-terminal hydride complex with PhNCS but also on the reversible H2 activation process.