To study the size effects on mixed-valence state of CePd 3, nanoparticles of CePd 3, sizes ranging from 5.2 to 9.5 nm, were prepared. The mixed valence increased from 3.3 to 3.5 as particle size reduced from bulk to 5.2 nm. This consequence was illustrated by the enhancements of valence fluctuations and 4f electron hybridization with conduction band through size reduction. Another interesting finding in the nanoparticles is that a certain fraction ∼ 25% of the sample becomes trivalent which is evident from the increase of magnetic susceptibility at low temperatures. ? Published under licence by IOP Publishing Ltd.