A facile synthesis route is described here for the preparation of a poly (anthranilic acid)-palladium nanoparticle composite material by polymerization of anthranilic acid (AA) monomer using palladium acetate (PA) as the oxidant. It was found that oxidative polymerization of AA leads to the formation of poly-AA (PAA), while the reduction of PA results in the formation of palladium nanoparticles with an average size of similar to 2 nm. The palladium nanoparticles were uniformly dispersed and highly stabilized within the macromolecular matrix resulting in a uniform metal-polymer composite material. The resultant composite material was characterized by means of different techniques, such as IR and Raman spectroscopy, which yielded information about the chemical structure of polymer, whereas electron microscopy images provided information concerning the morphology of the composite material and the distribution of the metal particles in the composite material. The composite material was tested as a catalyst for ethylene hydrogenation reaction and showed a catalytic activity at higher temperatures.