A series of palladium complexes of tetradendate Schiff base ligands L1 (N,N'-bis(salicylidene)phenylene-1,3-diamine) and its derivatives L2 and L3 have been synthesized by using the flexible ligand method within the supercage of zeolite-Y. These complexes in both their free and encapsulated states have been thoroughly characterized with the help of different characterization tools such as XRD, SEM-EDS, BET, thermal analysis, XPS, IR, and UV-vis spectroscopic studies. All these encapsulated complexes are identified with a dramatic red shift of the d-d transition in their electronic spectra when compared with their free states. Theoretical as well as experimental studies together suggest a substantial modification of the structural parameters of square planar Pd(II)-Schiff base complexes upon encapsulation within the supercage of zeolite-Y. Encapsulated complexes are also subject to show modified catalytic activities toward the Heck reaction. These heterogeneous catalysts can easily be separated from the reaction mixture and reused.