The onset of ferromagnetism has been experimentally observed in small Pd particles of average diameter 2.4 nm. High-resolution studies reveal that a high percentage of the fcc particle exhibits single and multiple twinning boundaries. The spontaneous magnetization close to 0.02 emu/g seems to indicate that only a small fraction of atoms holds a permanent magnetic moment and contributes to ferromagnetism. The possible origin of ferromagnetism is briefly discussed according to different models recently reported.