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The partial oxidation of ethane to acetic acid on a multi-component Mo16V6.37Nb2.05Pdx oxide catalyst supported on Degussa P25 titania has been investigated. The catalyst was characterized using BET surface area, X ray diffractometer (XRD) and transmission electron microscopy (TEM). The reaction was carried out in a differential reactor in a temperature range of 200-275°C and at a total pressure of 200 psi. The addition of trace amounts of nano-palladium, either as palladium oxides or metallic palladium, enhanced ethane oxidation towards the formation of acetic acid with near-complete depletion of the ethylene intermediate from the reactor effluent. The introduction of nano-Pd 0 to Mo16V6.37Nb2.05Ox/TiO2 decreased the required palladium source to a third when compared with nano-PdOx. A green method was applied to prepare metallic nano-palladium using polyethylene glycol (PEG) and palladium acetate. PEG acted as a stabilizer and as a reducing agent. Transmission electron microscope (TEM) images of palladium nanoparticles showed an average size of approximately 15 nm. The as-prepared palladium nanoparticles were found to be highly stable.