Epoxidized natural rubber has been selectively hydrogenated in the presence of a homogeneous palladium acetate catalyst. The hydrogenated product has been characterized by infra-red and nuclear magnetic resonance spectroscopies. No change is noted in the epoxy content of the polymer after the reaction. The catalyst is highly selective in reducing carbon-carbon double bonds in the presence of epoxy groups. Natural rubber has also been hydrogenated for a comparative study. The rate constant of hydrogenation is decreased with increase in epoxy content of the polymer.