New membrane catalysts with less than 1.5% of Pd in porous stainless steel have been prepared for liquid phase hydrogenation of unsaturated organic compounds. Ultradispersed Pd modified with catalytically active Pb, Mn, or Bi was prepared using Metal Vapour Synthesis techniques. Rates of over 12 mol/m(2)h with selectivities of up to 96% in hydrogenation of dehydrolinalool into linalool under atmospheric pressure of H-2 were observed. The ease of separation of this catalyst from reaction products, its regenerability, along with its corrosion, thermal stability, and mechanical strength give good prospects for these materials.