In this paper, we discuss the previous advances, current challenges, and future opportunities for the research of catalytic reduction of water pollutants. We present five case studies on the development of palladium-based catalysts for nitrate, chlorate, and perchlorate reduction with hydrogen gas under ambient conditions. We emphasize the realization of new functionalities through the screening and design of catalytic metal sites, including (i) platinum group metal (PGM) nanoparticles, (ii) the secondary metals for improving the reaction rate and product selectivity of nitrate reduction, (iii) oxygen-atom-transfer metal oxides for chlorate and perchlorate reduction, and (iv) ligand-enhanced coordination complexes for substantial activity enhancement. We also highlight the facile catalyst preparation approach that brought significant convenience to catalyst optimization. Based on our own studies, we then discuss directions of the catalyst research effort that are not immediately necessary or desirable, including (1) systematic study on the downstream aspects of under-developed catalysts, (2) random integration with hot concepts without a clear rationale, and (3) excessive and decorative experiments. We further address some general concerns regarding using H2 and PGMs in the catalytic system. Finally, we recommend future catalyst development in both “fundamental” and “applied” aspects. The purpose of this perspective is to remove major misconceptions about reductive catalysis research and bring back significant innovations for both scientific advancements and engineering applications to benefit environmental protection.