We have studied spin pumping in Pd/ Fe͑001͒ ultrathin crystalline films prepared on GaAs͑001͒ by ferromagnetic resonance ͑FMR͒. FMR measurements show that the Pd͑001͒ overlayers lead to an appreciable attenuation of the spin current, which was generated by the precessing magnetization of Fe. Pd overlayers thicker than about 10 nm act as perfect spin sinks. It is argued that the loss of spin coherence in Pd is caused by scattering with spin fluctuations.