Palladium sulfate is primarily used as a catalyst in various chemical reactions, particularly in organic synthesis. It plays a significant role in hydrogenation and dehydrogenation processes, where it facilitates the addition or removal of hydrogen from organic compounds. This property makes it valuable in the production of fine chemicals, pharmaceuticals, and agrochemicals.

In addition, palladium sulfate is employed in electroplating applications to deposit a thin layer of palladium onto surfaces, enhancing their durability, corrosion resistance, and electrical conductivity. This is especially useful in the electronics industry for coating connectors and other components.

It is also utilized in research and development for studying catalytic mechanisms and exploring new synthetic pathways. Its versatility and efficiency make it a crucial component in advancing chemical and material sciences.