We have performed measurements of the low-temperature specific heat fo
r T = 0.7-20 K and magnetic susceptibility for T = 1.8-300 K of Pd nan
ocrystals with average particle size 84 Angstrom. An enhancement of th
e specific heat is observed at temperatures T > 3.5 K for 84-Angstrom
Pd nanocrystals. This enhancement is primarily related to the softenin
g of and the size effect on the phonons. The temperature coefficient o
f specific heat gamma decreases to a lower value as compared to that o
f bulk Pd. An estimated surface coefficient of specific heat gamma(s)
is about 30% that of the bulk. This is also reflected in a reduction o
f the magnetic susceptibility of the Pd nanocrystals. The peak of the
magnetic susceptibility observed at similar to 80 K in bulk Pd is not
observed in the nanocrystals; this could be due to a change of the ene
rgy band structure in the Pd nanocrystals.