PdCl2 is a common starting material in palladium chemistry – palladium-based catalysts are of particular value in organic synthesis.

In both forms, the palladium centres adopt a square-planar coordination geometry that is characteristic of Pd(II).

It is not particularly soluble in water or non-coordinating solvents, so the first step in its utilization is often the preparation of labile but soluble Lewis base adducts, such as bis(benzonitrile)palladium dichloride and bis(acetonitrile)palladium dichloride.

[11] Even when dry, palladium(II) chloride is able to rapidly stain stainless steel.

Thus, palladium(II) chloride solutions are sometimes used to test for the corrosion-resistance of stainless steel.