Metal nanoparticle-incorporated metal–organic framework (MOF) nanosheets can integrate their respective merits to have important applications in heterogeneous catalysis. Herein, we report the loading of ultra-fine Pd nanoparticles within ultra-thin nanosheets NMOF-Ni through an in situ reduction strategy under mild conditions. Owing to the synergetic effects of ultra-small Pd NPs and the intrinsic characteristics of two-dimensional supports, the obtained Pd@NMOF-Ni showed high catalytic activity and size-selectivity in olefin hydrogenation with easy recovery. Meanwhile, Pd@NMOF-Ni is also highly active in the catalytic reduction of aqueous 4-nitrophenol to 4-aminophenol.