A new approach to the formation of palladium nanoparticulate films with diameter between 6 and 50 nm by the solid-liquid interface reaction technique (SLIRT) has been presented. A solid film of palladium nitrate was formed by the modified spin coating method. This film is subsequently immersed in a reducing solution to initiate a reaction at the interface and ultimately transforms it to a palladium metal film. The kinetics of palladium reduction has been studied by UV-visible spectroscopy. The characterization of the palladium film has been performed by various physicochemical techniques such as XRD, ED, XPS, SEM, EDX, TEM, and UV-visible spectroscopy. The texture and morphology of the materials has been investigated by atomic force microscopy (AFM). At a constant palladium nitrate concentration, the average diameter of palladium nanoparticles decreases with an increase of hydrazine concentration. The effect of concentration of hydrazine on the particle size has been discussed. The palladium film formation mechanism has been proposed for the SLIRT. (C) 2004 Elsevier Inc. All rights reserved.