The use of supported Pd catalysts, with low and high metal content, for the hydrodechlorination of chlorobenzene is presented in this article. Application of microwave irradiation during preparation of catalysts resulted in the synthesis of large Pd particles at moderate temperatures. The nature of the support played a key role in the formation of cationic Pd species. The extent of interaction of the Pd species with the support, the nature of metal precursor, particularly the residual chlorine on the surface were found to significantly affect the activity of the catalysts. In the case of bimetallic catalysts also microwave heating resulted in creation of bigger particles of Pd compared to those observed in conventionally heated catalysts. Besides, it minimized alloy formation as a result of which the activity of the catalysts in hydrodechlorination was found to be higher compared to that observed on conventionally prepared catalysts. Contrary to the general observation that low dispersed Pd catalysts are preferable for high stability, by means of the deposition-precipitation method adopted for catalyst preparation it was demonstrated that even highly dispersed (low Pd containing) catalysts can exhibit comparable activity and stability. An analysis of the nature of Pd species and its role in the stability of the catalysts is presented.