A new procedure for preparation of palladium sulfide nanoparticles, which are deposited and anchored over highly graphitized carbon nanofibers, is presented. The preparation method is based on the use of PdSO 4 as metal precursor or alternatively in the previous functionalization of the carbon surfaces with sulfonic groups by treatment with fuming sulfuric acid. Using an in situ high-energy X-ray diffraction technique, in both cases it is demonstrated that during the reduction treatment, the initially present palladium hydride is transformed into a palladium sulfide (Pd 4 S). The catalytic properties of these materials have been tested in the gas-phase butadiene partial reduction to butenes. Although metallic palladium nanoparticles supported in the same carbon fibers produce butane as the principal product, the supported Pd 4 S nanocrystals mainly yield different isomers of butenes independently of the conversion level. Furthermore, applying the same X-ray diffraction method reveals that this catalytic phase is stable during reaction.