Electrical resistivity ρ(T ), magnetoresistance MR, magnetization M(T , B) and magnetic susceptibility χ(T , B) measurements at temperatures down to 25 mK and applied magnetic fields up to 14 T are presented for Th-diluted U 1−x Th x Pd 2 Al 3 alloys. For U-rich alloys, antiferromagnetic order is observed and T N varies slowly with the Th concentration in the region 0 x 0.2. From ρ(T ) data we calculate a value of the energy gap = 12 K in the spinwave spectrum. In the U-rich concentration region a coherent Kondo description applies, but for alloys with 0.4x 0.93 a non-Fermi-liquid (NFL) phase prevails. An approximately linear temperature dependence of ρ(T ) is observed at low temperatures for about a decade in temperature, but deviation from this dependence occurs at the lowest temperatures. We show that the MR of the NFL alloys may be described in terms of the Coqblin-Schrieffer Hamiltonian, from which values of the single-ion characteristic Kondo temperature T K ≈ 40 K are calculated. An applied magnetic field is shown to recover Fermi-liquid dynamics in both χ(T ) and ρ(T ). We give a description of the low-temperature magnetization M(T , B) in terms of a two-channel Kondo model.