The state of palladium in Pd/SO42--ZrO2 (Pd/SZ) isomerization catalyst was investigated by the temperature-programmed reduction (TPR), chemisorption technique, infrared spectroscopy of adsorbed carbon monoxide (FTIRS), X-ray photoelectron spectroscopy (XPS), diffuse-reflectance UV-vis spectroscopy (UV-vis DRS), and benzene hydrogenation as a test reaction. It has been stated that reduction temperature has a great impact on the metal function of Pd-promoted sulfated zirconia catalyst. Metal centers are formed at about 30-70 degrees C and characterized by high palladium dispersion and activity in benzene hydrogenation. At temperatures above 200 degrees C. intensive sulfate decomposition occurs and products of sulfate reduction poison the metal function of the catalyst. According to XPS and FURS study, palladium particles in the poisoned samples are only partly oxidized, but the main part is presented by metallic phase without large amount of PdS. Reduction of Pd-containing catalyst at 150 degrees C(instead of 250 degrees C) leads to higher conversion and 2,2-dimethylbutane yield in acid-catalyzed reaction of n-hexane isomerization. Higher isomerization activity in this case is provided by prevention of active sulfate species decomposition due to the capability of palladium metallic particles formation at low reduction temperatures. (C) 2010 Elsevier B.V. All rights reserved.