In this paper we present the effect of palladium catalysis on the surface activity of nanocrystalline materials. Three classic hydrogen-absorbing alloys, Mg2Ni, LaNi5, and FeTi, were prepared in a nanocrystalline state by ball milling and modified by the addition of small amounts of Pd (less than 1 wt.%). This modification gave powders able to absorb hydrogen at room temperature in the as-produced state, with no need for any activation. Hydrogen absorption characteristics for the nanocrystalline Mg2Ni, LaNi5 and FeTi were enhanced: the absorption rates were much faster, even at lower temperatures.