An 11‐mer oligonucleotide incorporating a central (2‐iodobenzoylamino)methyl residue has been synthesized and palladated by oxidative addition of Pd2(dba)3. UV melting profiles of the duplexes formed by the palladated oligonucleotide with its natural complements were biphasic and the higher melting temperatures (Tm) exhibited considerable hysteresis. CD spectra, in turn, resembled those of canonical B‐type double helices. Two‐step denaturation, with the “low‐Tm” melting involving only canonical base pairs and the “high‐Tm” melting involving also dissociation of a PdII‐mediated base pair, appears the most likely explanation for the observed UV melting profiles. As the latter step in all cases takes place at a higher temperature than denaturation of natural duplexes of the same length, the putative PdII‐mediated base pairs are stabilizing.