Nanosized palladium particles were incorporated into mesoporous silica matrix to obtain nanocomposites using the sol-gel technique. Effects of the finely dispersed metallic palladium on the microstructure and properties of the nanocomposites were investigated. By means of X-ray diffraction and optical absorption, it was found that palladium particles were 5～9 nm in diameter and their uniform dispersion in the mesoporous silica depended on both the content of the palladium and the structural features of the silica matrix. The results showed that the mixing method of preparation led to wider size distribution of the nanosized particles as compared to the immersion method, but dispersed degree was reduced. Although the incorporation of nanosized palladium particles could not substantially induce significant structural changes of the matrix, the apparent red-shifted optical absorptions for the nanocomposites were observed as compared to the parent monolithic silica, particularly with increase in palladium loading and calcination temperature.