We demonstrate that the hydrogen storage capacity of multi-walled carbon nanotubes can be enhanced by polyvinylpyrrolidone functionalization. The polyvinylpyrrolidone acts as a stabilizing agent for Pd-nanoparticles, reduces their size and facilitates their uniform and enhanced loading onto multi-walled carbon nanotubes. According to sorption studies, the polyvinylpyrrolidone capping and consequent nanostructural modification enables 2.3 times more hydrogen adsorption than mere Pd-functionalization of multi-walled carbon nanotubes. Corresponding morphological changes before and after polyvinylpyrrolidone capping, characterized using Raman Spectroscopy, X-ray diffraction, TEM and thermal analysis techniques, are also presented. The results contribute towards increasing the efficiency of hydrogen based sustainable energy sources. (C) 2011 Elsevier B.V. All rights reserved.