Bifunctional catalysts containing 0.1-0.5 wt % nickel and 0.1 wt % palladium supported on HY zeolite were prepared through incipient wetness impregnation (IWI) and characterized by X-ray diffraction (XRD), Brunauer-Emmett-Teller (BET) surface area, temperature-programmed desorption of ammonia (NH3-TPD), temperature-programmed reduction (TPR), X-ray photoelectron spectroscopy (XPS), and transmission electron microscopy (TEM). Hydroisomerization of n-octane was carried out between 200 and 450 C under 1 atm of pressure, and it was found that Ni addition up to 0.3 wt % over 0.1 wt % Pd/HY zeolite enhanced the n-octane conversion and isomerization selectivity with a low percentage of cracked products. As the Ni amount exceeds the threshold values, the conversion decreases with an increase in cracked products, and also, the selectivity of mono- and dibranched isomers was improved, suggesting the operation of a protonated cyclopropane (PCP) intermediate mechanism. As a conclusion, the bimetallic catalysts were more selective toward the formation of dibranched isomers containing higher octane number. The role of noble metal over HY zeolite and recyclability of the catalyst were also studied.