Palladium-modified nitrogen-doped titanium oxide (TiON/PdO) nanoparticles were synthesized by a sol-gel process, for visible-light-induced photocatalysis using humic acid (HA) as a target. Our work shows that palladium modification has strong effects on the optical and photocatalytic properties of nitrogen-doped titanium oxide (TiON) photocatalysts. TiON/PdO nanoparticles demonstrated an enhanced photocatalytic activity over TiON within a narrow range of palladium concentration. Beyond this range, the adverse effect of palladium modification was observed in the visible-light-induced degradation of HA. The effects of palladium modification are discussed in terms of its role in controlling electron-hole recombination.