Herein, we have reported synthesis of a macrocyclic organosulfur ligand (L1) having seventeen‐membered macrocyclic ring. Subsequently, the corresponding trans‐palladium complex (C1) of bulky macrocyclic organosulfur ligand was synthesized by reacting it with PdCl2(CH3CN)2 salt. The newly synthesized ligand and complex were characterized using various analytical and spectroscopic techniques such as 1H, 13C{1H} Nuclear Magnetic Resonance (NMR), Ultraviolet–visible (UV‐Visible), Fourier Transform Infrared (FTIR) Spectroscopy, High‐Resolution Mass Spectrometry (HRMS), and elemental analysis. The binding mode of macrocyclic sulfur ligand with palladium was studied using single crystal X‐ray diffraction technique. The complex showed a square planar geometry with trans orientation of two ligands around the palladium center. The potential energy surface (PES) for the rotational process of C1 suggested a barrier of ~23.81 kcal/mol for chlorine rotation. Furthermore, the palladium complex (C1) was used as a catalyst(2.5 mol %) for α‐olefination of nitriles by primary alcohols. The α,β‐unsaturated nitrile compounds were found to be the major product of reaction (57‐78% yield) with broad substrate scope and large functional group tolerance. Notably, the saturated nitrile product was not observed during the reaction. The mechanistic studies suggested formation of H2 and H2O as only by‐products of the reaction thereby making the protocol greener and sustainable.