Pd/HY catalysts reduced at temperatures ranging from 573 to 873 K were compared in respect of the hydroconversion of n-nonane performed at 473 K and 0.1 MPa. The catalyst reduced at 573 K had a stable activity and a high selectivity for isomerization, but samples reduced at 773 K or above initially favoured cracking at the expense of isomerization. The evolution of the reaction mechanism with the temperature of reduction is related to a change in the dispersion of palladium revealed by TEM.