Elastic and inelastic scattering of helium atoms has been used to study the Bi(111) surface. Sharp diffraction peaks are found with results in excellent agreement with previous structure determinations of the Bi(111) surface. The rather large first order peaks with respect to the zero order peak indicate a stronger surface corrugation than observed in helium scattering from other metallic surfaces. Time-of-flight spectra of scattered He atoms clearly reveal two inelastic scattering maxima, which allow a first report on phonon creation and annihilation events on the Bi(111) surface. An estimate of the group velocity shows that the phonon creation peak is likely to correspond to a Rayleigh mode.