The electromagnetic properties of heavy fermion CePd2Si2 are investigated using density functional theory using the local density approximation (LDA) and LDA+U methods. The Ce f-bands are located near the Fermi energy and hybridized with the Pd-3d states. This hybridization plays an important role in generating the physical characteristics of this compound. The magnetic moment of CePd2Si2 calculated within the LDA scheme does not match with the experimental result because of the strong correlation interaction between the f orbitals. The calculation shows that the specific heat coefficient underestimates the experimental value by a factor of 5.98. This discrepancy is attributed to the formation of quasiparticles. The exchange interaction between the local f electrons and the conduction d electrons is the reason for the formation of quasiparticles. The exchange interaction is significant in CePd2Si2, which makes the quasiparticle mass increase. This enhances the specific heat coefficient.