The effect of surface palladium films on the electrochemical properties of hydride-forming metal alloys used as cathode materials in Ni-metal hydride cells has been studied. The results indicate that the presence of surface Pd improved the discharge capacity and rate capability of the hydride electrodes. The enhancement in performance may be explained on the basis of the electrocatalytic effect of Pd on the kinetics of the hydrogen absorption/desorption (hydriding/dehydriding) reactions.