We developed a selective solvothermal synthesis of palladium nanoparticles on nanodiamond (ND)-graphene oxide (GO) hybrid material in solution. After the GO and ND materials have been added in PdCl2 solution, the spontaneous redox reaction between the ND-GO and PdCl2 led to the creation of nanohybrid Pd@ND@GO material. The resulting Pd@ND@GO material was characterized by X-ray diffraction (XRD), Raman spectroscopy, Fourier transform infrared (FTIR) spectrometry, scanning electronic microscopy (SEM), and atomic absorption spectrometry methods. The Pd@ND@GO material has been used for the first time as a catalyst for the reduction for 2-nitrophenol and the degradation of methylene blue in the presence of NaBH4. GO plays the role of 2D support material for Pd nanoparticles, while NDs act as a nanospacer for partly preventing the re-stacking of the GO. The Pd@ND@GO material can lead to high catalytic activity for the reduction reaction of 2-nitrophenol and degradation of methylene blue with 100% conversion within similar to 15 s for these two reactions even when the content of Pd in it is as low as 4.6 wt%.