Metal chalcogenide nanoparticles have been attracting extensive attention in diverse fields. Traditionally these nanoparticles are stabilized by organic ligands such as thiols and amines involving nonconjugated core-ligand interfacial interactions. In the present study, a facile wet-chemistry method is described for the synthesis of palladium disulfide (PdS2) nanoparticles capped with acetylene derivatives. Spectroscopic and electrochemical measurements suggest that conjugated Pd-C≡ linkages are formed at the core-ligand interface and facilitate electronic coupling and hence manipulation of the nanoparticle optical and electronic properties. The unique interfacial linkages also allow further functionalization of the nanoparticles by metathesis reaction with olefin derivatives, as manifested in the reaction with vinylferrocene. This research opens new avenues for the structural engineering and functionalization of metal chalcogenide nanoparticles.