Carbon dots (CDs) with a size range of 0.2 to 2 nm were prepared using a hydrothermal treatment of sucrose and oleic acid. The as-synthesized CDs were used to reduce H2PdCl4 to metallic Pd nanoparticles with dPd = 9.3 ± 3.7 nm, as confirmed by PXRD and HRTEM data. Pd particles were made to be larger than the CDs, to observe any inverse support effects, however, TEM data revealed that the CDs were transformed to carbon sheets in the reduction reaction at 100 °C. The synthesized Pd-CDs catalysts (0.81 wt. % loading) and CDs were both tested for the liquid phase hydrogenation of cinnamaldehyde. The influence of mass, temperature, and hydrogen flow rate on the activity and selectivity of the CDs and Pd-CDs catalyst on the hydrogenation of cinnamaldehyde was investigated. The CDs gave a cinnamaldehyde conversion (40%, 4 h) with selectivity towards the reduction of the C = O bond (cinnamyl alcohol) while the Pd-carbon catalyst was only selective to the reduction of the C = C bond (conversion 78%) indicating the dominance of Pd in the reaction. Post analysis of the deactivated catalysts indicated formation of carbon sheets and sintering of the Pd nanoparticles. It is thus shown that the presence of Pd induces the CDs to carbon sheet formation and thus indicates the limited use of CDs as a support for the olefin hydrogenation reaction with the CDs produced carbon support. This finding has implications for other studies using CDs as supports.Graphical abstract