Palladium(II) chloride is the starting material for the palladium complexes that laboratories actually use. Heating it with two equivalents of triphenylphosphine gives bis(triphenylphosphine)palladium dichloride; with 1,1′-bis(diphenylphosphino)ferrocene it gives PdCl₂(dppf); refluxing in acetonitrile or benzonitrile gives the labile PdCl₂(MeCN)₂ and PdCl₂(PhCN)₂; and dissolution in hydrochloric acid or alkali chloride solution gives tetrachloropalladic acid and the sodium or potassium tetrachloropalladates. Treatment with ammonia gives tetraamminepalladium(II) chloride, the salt used for electroless palladium plating and for ion-exchange loading of zeolites.
It is the classical catalyst of the Wacker oxidation of terminal alkenes to methyl ketones (palladium chloride with copper(II) chloride under oxygen in aqueous DMF), and the usual palladium source for preparing palladium on carbon and other supported hydrogenation catalysts by impregnation with tetrachloropalladic acid followed by reduction with formaldehyde, formate or hydrogen. In the plating industry palladium chloride with tin(II) chloride forms the colloidal activator that seeds electroless copper and nickel deposition on plastics and printed circuit boards.
Palladium chloride papers and solutions are the traditional detectors for carbon monoxide, which reduces the salt to a black palladium deposit. It is also used for palladium nanoparticle synthesis, for palladium membranes and films, and in analytical chemistry as a precipitant and as a palladium standard after dissolution in acid.