An ultra-low Pd loading nanocatalyst is synthesized by a convenient solution route of photochemical reduction and aqueous chemical growth. The modification of nanocatalyst structures is investigated through changing morphologies of Pd nanoclusters on the surface of ZnO nanorods. A significant enhancement in photocatalytic properties has been achieved by decorating a trace amount of Pd clusters (0.05 at%) on the surface of ZnO nanorods. The reduction of 4-nitrophenol (4-NP) to 4-aminophenol (4-AP) is applied to demonstrate multiple catalytic activities in the Pd-ZnO hybrid nanocatalyst, which also provides a better understanding of the relationship between the unique nanoconfigured structure and catalytic performance.