Carbon monoxide terpolymers with ethylene and propylene are synthesized in the presence of a supported palladium complex in toluene for the first time. The reaction rate calculated from the terpolymer yield per gram of supported catalyst per hour depends on the reaction temperature and the propylene to eth ylene molar ratio in the reaction solution. The amount of terpolymer per mole of palladium formed per hour decreases as the molecular mass of the terpolymer increases. Terpolymers with a molar fraction of propylene units up to 0.72 are synthesized when the initial propylene to ethylene molar ratio in the reaction solution is increased to 15.3. The number average molecular mass of the terpolymer decreases from 30650 to 1420 when the temperature of synthesis is increased from 40 to 90°C.