Zirconia having high thermal stability and high surface area (up to 160 m(2)/g at 700 C) has been prepared by a colloidal "digesting" process. This material having demonstrated high surface areas at elevated temperatures was then applied as a catalyst support. A Pd colloid with diameter of approximate to 12 nm has been successfully deposited on the high surface area zirconia material. All systems have been well characterized by TEM, X-ray diffraction, N-2 adsorption isotherms, FTIR, elemental analysis and dynamic light scattering techniques. The colloidal Pd particles have been found homogeneously well dispersed in the hydrous zirconia matrix without aggregation. The Pd/ZrO2 catalysts have been screened for cyclohexene and 1-hexene hydrogenation activity and it was found that the catalyst is extremely active. (c) 2005 Elsevier Inc. All rights reserved.