2-hydroxy-5-methylacetophenoneisonicotinoylhydrazone (HMAINH) is used as new reagent for spectrophotometric determination of palladium(II). The method is simple, rapid and highly sensitive and reagent forms a 1:1 yellow coloured complex with Pd (II). The complex shows absorption maximum at 385 nm, where as absorption due to reagent is negligible. The extraction was carried out at 0.010-0.015M sulphuric acid into chloroform. The Beer’s law is obeyed over the concentration range of 2.0 - 9.0 ppm of palladium (II) at 385 nm. Optimum range as defined by Ringbom’s plot was 3.0 – 7.0 ppm. The molar absorptivity and Sandell’s sensitivity of extracted species are 5.320 x 103 dm3 mol-1cm-1 and 0.02 μg cm-2 respectively. The standard deviation is 0.8755. The effect of various diverse ions on the estimation of Pd (II) has been studied.