Selective adsorption of palladium from metallurgical wastewater containing Pt (IV), Rh (III), Ca2+, Cu2+, Fe3+, Ni2+, Pb2+, V3+, and Ti4+ has tremendous economic and environmental benefits. In this paper, a novel thiadiazole-based chloromethyl polystyrene-modified adsorbent, viz. 2, 5-bis-polystyrene-1,3,4-thiadiazole (PS-DMTD), was synthesized using chloromethyl polystyrene as the backbone. The experimental results show that PS-DMTD can selectively separate Pd (II) from metallurgical wastewater in a one-step adsorption process. The calculated saturation adsorption capacity of PS-DMTD for Pd (II) was 176.3 mg/g at 25 °C. The separation factors of βPd (II)/Mn+ (Mn+: Pt (IV), Rh (III), Ca2+, Cu2+, Fe3+, Ni2+, Pb2+, V3+, and Ti4+) were all higher than 1 × 104. FT-IR, XPS, and single-crystal X-ray diffraction showed that the adsorption of Pd (II) to PS-DMTD was primarily through a coordination mechanism. Density functional theory (DFT) calculations revealed that the other base metal ions could not coordinate with the PS-DMTD. Pt (IV) could not be adsorbed to PS-DMTD due to its strong chlorophilicity. Furthermore, Rh (III) existed as a polyhydrate, which inhibited Rh (III) diffusion toward the positively charged absorption sites on the PS-DMTD. These results highlight that PS-DMTD has broad application prospects in the recovery of Pd (II) from metallurgical wastewater.