Bilayered palladium (30 nm thick)-magnesium (350 nm thick) thin films were prepared using the pulsed laser deposition technique in the presence of various background gases (Ar, He and a mixture He+H-2) under different partial pressures (47 and 27 Pa). According to the deposition atmosphere, the Pd/Mg interface shows either a sharp or an extended transition. The electrochemical hydriding properties and the mechanical stability upon cycling of the Pd/Mg film are greatly improved when an extended "intermixing" zone between the Pd and Mg layers is present. The Pd-Mg films prepared under pure helium fulfill these conditions. (c) 2005 Published by Elsevier B.V.