Colloidal palladium supported on a chelate resin containing iminodiacetic acid groups was prepared by refluxing the palladium chelate resin in methanol-water. Using the resin-supported colloidal palladium as a catalyst, cyclopentadiene was hydrogenated to cyclopentene in 97.1% selectivity at 100% conversion of cyclopentadiene under 1 atm of hydrogen in methanol at 30°C. Finely dispersed metal particles ranging from 10 to 60 Å in diameter were observed in the resin by electron microscopy. Both x-ray microanalysis for palladium and elution analysis of palladium ion with an aqueous solution of ethylenediaminetetraacetic acid disodium salt demonstrated the existence of large amounts of palladium ion complexes in the resin. The amount of palladium metal in the resin was estimated to be about 5% of the total palladium. Since the resin, after removal of most of the ionic palladium, exhibited almost the same catalytic activity as before, it was concluded that the finely dispersed metal particles are the active species in the catalyst.