Analytical electron microscopy has been used to study a new phase found in a Ti,, Pd,, alloy. The new phase was formed as ellipsoidal particles along the grain boundaries of the martensitic matrix. The crystal structure was identified as trigonal, with lattice parameters of a=0.83 nm, and c=2.62 nm, and point group 3 ($) over bar m. The phase contains 68-73 at% Ti (48-54 wt% Ti).