An etching growth strategy was developed to prepare corolla-like Pd mesocrystals consisting of unidirectionally aligned, well-spaced, and connected ultrathin (1.8-nm-thick) Pd nanosheets. The combined use of CO and Fe(3+) is critical to the successful synthesis of the branched corolla-like Pd mesocrystals. While CO functions as the surface-confining agent to allow anisotropic growth of the 1.8-nm-thick Pd nanosheets as branches, Fe(3+) etches the Pd seeds at the early stage of the reaction to induce formation of the branched structure. Inheriting the unique properties of 1.8-nm-thick Pd nanosheets, the as-prepared Pd mesocrystals display well-defined surface plasmon resonance absorption in the near-infrared region, a high electrochemically active surface area, and a significant photothermal effect when irradiated with a near-infrared laser. Owing to the presence of internal voids and increased apparent thickness, the Pd mesocrystals also exhibit several features superior to those of single-domain Pd nanosheets, making them promising for electrocatalysis and cancer photothermal therapy applications.