Palladium(II) 2,4-pentanedionate, impregnated on alumina nanopowder, was reduced by dimethylamine borane (DMAB) forming Pd(0) nanoparticles (NPs) at room temperature. Pd(0) NPs could be isolated from solution and characterized by ATR-IR, UV-vis, XRD, SEM, TEM, XPS and BET. The results obtained from TEM images reveal the formation of palladium(0) nanoparticles on gamma-alumina, having a mean particle size of 7.1 +/- 2.6 nm. Alumina supported Pd(0) NPs with various metal loadings were employed as catalyst in dehydrogenation of DMAB at room temperature and the sample with 5.0% wt. Pd provides the highest turnover frequency (TOF = 73 h(-1)) at 25.0 +/- 0.5 degrees C. Kinetics of the catalytic dehydrogenation was also investigated depending on Pd concentration and temperature to determine the kinetic parameters of the H-2 release reaction.