In this paper we present DAML-S, a DAML+OIL ontology for describing the properties and capabilities of Web Services. Web Services - Web-accessible programs and devices - are garnering a great deal of interest from industry, and standards are emerging for low-level descriptions of Web Services. DAML-S complements this effort by providing Web Service descriptions at the application layer, describing what a service can do, and not just how it does it. In this paper we describe three aspects of our ontology: the service profile, the process model, and the service grounding. The paper focuses on the grounding, which connects our ontology with low-level XML-based descriptions of Web Services.