Inherent defects, such as grain boundaries (GBs), wrinkles and structural cracks, present on chemical vapor deposition (CVD)-grown graphene are inevitable because of the mechanism used for its synthesis. Because graphene defects are detrimental to electrical transport properties and degrade the performance of graphene-based devices, a defect-healing process is required. We report a simple and effective approach for enhancing the electrical properties of graphene by selective graphene-defect decoration with Pd nanoparticles (Pd NPs) using a wet-chemistry-based galvanic displacement reaction. According to the selective nucleation and growth behaviors of Pd NPs on graphene, several types of defects, such as GBs, wrinkles, graphene regions on Cu fatigue cracks and external edges of multiple graphene layers, were precisely confirmed via spherical aberration correction scanning transmission electron microscopy, field-emission scanning electron microscopy and atomic force microscopy imaging. The resultant Pd-NP-decorated graphene films showed improved sheet resistance. A transparent heater was fabricated using Pd-decorated graphene films and exhibited better heating performance than a heater fabricated using pristine graphene. This simple and novel approach promises the selective decoration of defects in CVD-grown graphene and further exploits the visualization of diverse defects on a graphene surface, which can be a versatile method for improving the properties of graphene.