Ion exchange of Pd(II) ions into a nanostructured lyotropic liquid crystal
network, followed by reduction with hydrogen gas, generates a polymer compo
site containing finely dispersed, catalytically active Pd nanoparticles 4-7
nm in diameter. Loss of order upon nanoparticle growth appears to be due t
o residual mobility in the polymer matrix near the ionic headgroups. The Pd
nanoparticle composite exhibits excellent product selectivity in benzaldeh
yde hydrogenation and high reactivity in catalyzing Heck olefinations.