Faster activation of a multi-component AB5 based alloy metal hydride electrode through Pd nanoparticle (NP) impregnation is demonstrated. Pd nanoparticle impregnated MmNi5−x M x based alloy was prepared and characterized by scanning electron microscopy (SEM), energy dispersive spectroscopy (EDS) and elemental mapping techniques. Electro-catalytic activity of laminar metal hydride electrodes containing Pd nanoparticles and micrometer size Ni particles was studied. Hydrogen absorption efficiency of the nanocomposite electrodes was compared with the metal hydride electrodes without Pd nanoparticles. The incorporation of nanostructured materials in the metal hydride alloy increased its hydrogen absorption capacity at the initial stage and activated much faster, indicating its good prospect for energy storage applications.