The preparation of palladium nanoparticles supported on acetylacetone‐modified silica gel and their catalytic application for Heck olefination of aryl halides were investigated. The catalyst was characterized using X‐ray diffraction, X‐ray photoelectron spectroscopy, and transmission and scanning electron microscopies. The supported palladium nanoparticles are demonstrated to be a highly active and reusable catalyst for the Heck reaction. Several reaction parameters, including type and amount of solvent and base, were evaluated. The heterogeneity of the catalytic system was investigated with results indicating that there is a slight palladium leaching into the reaction solution under the applied reaction conditions. Despite this metal leaching, the catalyst can be reused nine times without significant loss of catalytic activity. Copyright © 2015 John Wiley & Sons, Ltd.