A single-step synthesis route is described for the preparation of a metal-polymer composite in which palladium acetate and meta-amino benzoic acid were used as the precursors for palladium nanoparticles and poly(meta-amino benzoic acid) (PABA). The palladium nanoparticles were found to be uniformly dispersed and highly stabilized throughout the macromolecule matrix. The resultant composite material was characterized by means of different techniques, such as IR and Raman spectroscopy, which provided information regarding the chemical structure of the polymer, whereas electron microscopy images yielded information regarding the morphology of the composite material and the distribution of the metal particles in the composite material. The composite material was used as a catalyst for the ethylene hydrogenation reaction and showed catalytic activity at higher temperatures. TEM studies confirmed the changed environment of the nanoparticles at these temperatures.