The outstanding radiation damage stability of an NiCoCrFePd high entropy alloy (HEA) as compared to conventional alloys poses the question for the mechanism of an ion–matter interaction. The positron annihilation lifetime spectroscopic and TEM (transmission electron microscopic) measurements are implemented to trace different kinds of defects produced by 120 MeV Au+9 ion irradiation and their evolution as a function of ion fluence. The variation of lifetimes and corresponding intensities with the ion fluence indicates the formation of dislocation-type defects at a lower ion fluence and vacancy clusters at a higher ion fluence caused by coalescence or agglomeration of dislocation defects. Formation of different types of defects in turn modulates the strain development inside the crystal. Additionally, the HR-TEM investigation of NiCoCrFePd HEA also exhibits the formation of dislocation and vacancy clusters with the average size of vacancy clusters increases from ∼2.9 ± 0.1 to ∼3.8 ± 0.1 nm with the increases in the ion fluence. Surprisingly, the average defect cluster size in NiCoCrFePd HEA is suppressed compared to NiCoCrFe MEA, thereby showing the enhanced radiation stability on Pd incorporation due to the high defect recombination caused by reduced thermal conductivity and high lattice distortion. Nano-indentation measurement shows that the radiation hardening behavior of the NiCoCrFePd HEA responded slowly owing to its damage suppression property as compared to the NiCoCrFe MEA. Additionally, softening behavior also appeared at an early fluence in NiCoCrFe MEA compared to the NiCoCrFePd HEA signifying its excellent resistance to defect accumulation.