Direct visualization and understanding of the atomic mechanisms governing the growth of nanomaterials are crucial for designing synthesis strategies of high specificity. Aside from playing a key role in numerous technological applications, palladium clusters and nanoparticles are particularly valuable due to their outstanding catalytic activity. Studies show that the properties of Pd nanomaterials depend on shape and size. Therefore, optimizing the synthesis to control the final size and shape of Pd nanoparticles is important for a large number of current and future applications. In this work, we exploit in situ liquid cell scanning transmission electron microscopy to track at the atomic scale the growth of Pd nanoparticles from the very early stage to mature, crystalline nanoparticles. We find that the formation of Pd nanoparticles consists of multiple steps. The first step in nanoparticle formation, representing a nonclassical nucleation step, can be described by the formation of agglomerates of Pd atoms. In the second step, these agglomerates grow via atomic addition to form primary nanoclusters, which coalesce to form amorphous clusters. In the third stage, these clusters continue to coalesce, leading to the formation of amorphous Pd NPs, while in parallel, growth by monomer attachment continues. Then, in the fourth step, the amorphous nanoparticles undergo a nanocrystallization process, where the continuous improvement of crystallinity and the establishment of a distinct morphology eventually give rise to the formation of facetted, crystalline nanoparticles. Similar to our earlier work with Au and Pt nanoparticles, these results confirm that even for simple systems, nonclassical nucleation and growth processes dominate and that these multi-step mechanisms are highly element-specific. Despite the fact that the synthesis conditions are identical, the element-specific interactions define the pathway of the formation of crystalline nanoparticles.