The small size of nanoparticles makes them attractive in catalysis due to their large surface-to-volume ratio. However, being small raises questions about their stability in the harsh chemical environment in which these nanoparticles find themselves during their catalytic function. In the present work, we studied the Suzuki reaction between phenylboronic acid and iodobenzene catalyzed by PVP-Pd nanoparticles to investigate the effect of catalysis, recycling, and the different individual chemicals on the stability and catalytic activity of the nanoparticles during this harsh reaction. The stability of the nanoparticles to the different perturbations is assessed using TEM, and the changes in the catalytic activity are assessed using HPLC analysis of the product yield. It was found that the process of refluxing the nanoparticles for 12 h during the Suzuki catalytic reaction increases the average size and the width of the distribution of the nanoparticles. This was attributed to Ostwald ripening in which the small nanoparticles dissolve to form larger nanoparticles. The kinetics of the change in the nanoparticle size during the 12 h period show that the nanoparticles increase in size during the beginning of the reaction and level off toward the end of the first cycle. When the nanoparticles are recycled for the second cycle, the average size decreases. This could be due to the larger nanoparticles aggregating and precipitating out of solution. This process could also explain the observed loss of the catalytic efficiency of the nanoparticles during the second cycle. It is also found that the addition of biphenyl to the reaction mixture results in it poisoning the active sites and giving rise to a low product yield. The addition of excess PVP stabilizer to the reaction mixture seems to lead to the stability of the nanoparticle surface and size, perhaps due to the inhibition of the Ostwald ripening process. This also decreases the catalytic efficiency of the nanoparticles due to capping of the nanoparticle surface. The addition of phenylboronic acid is found to lead to the stability of the size distribution as it binds to the particle surface through the O- of the OH group and acts as a stabilizer. Iodobenzene is found to have no effect and thus probably does not bind strongly to the surface during the catalytic process. These two results might have an implication on the catalytic mechanism of this reaction.