Palladium is usually supported on porous materials in the form of nanoparticles. The hydrogen storage capacity of such a system is usually much higher than the separated capacity of the metal (approximately 0.7 H/Pd) and the support. Pd nanoparticles provide a source of hydrogen atoms by dissociation. The atomic hydrogen spills over from the Pd structure to the support via surface diffusion and this phenomenon is known as hydrogen spillover. In this study commercial SWNTs were dispersed in PEG 200 solution. Then the precursor PdCl2 in PEG 200 was added and the whole left to react under stirring with reflux at 200 degrees C for 1 h. Succeeding washings with ethanol and centrifugation followed for several times and finally the sample was dried at 60 degrees C. Through this procedure a 3 wt% Pd loading was achieved whereas the TEM derived nanoparticle size distribution indicated a 50% percentage of Pd nanoparticles with diameter less than 8 nm. Hydrogen isotherms up to 2 MPa were carried out with the gravimetric method. The defined storage capacity of 1.2 wt% at 0.2 MPa was quite satisfactory. However, a 0.2 wt% portion of this storage capacity was attributed to the formation of water molecules through reaction of H atoms with the dissociatively adsorbed oxygen atoms on the Pd nanoparticles. This conclusion was educed from a series of thermal desorption experiments following the H2 adsorption/desorption cycles and regeneration. Through this set of experiments several other important parameters were defined as the temperature for complete hydrogen desorption and the optimum conditions for PEG removal.