An air and moisture stable Pd(II) complex with a pyridyl based selenoether ligand was synthesized and characterized with microanalysis, UV–Vis and NMR spectroscopy. The molecular structure of the complex was established by single crystal XRD analysis. The complex upon thermolysis in oleyl amine (OAm) at higher temperatures about 270 °C afforded Pd₁₇Se₁₅ nanoparticles of average dimensions around 14–19 nm. Phase purity, crystal structure and morphology of nanomaterials were assessed by pXRD, EDS and electron microscopy. Growth duration of nanoparticles was found to have profound effect on the particle size of Pd₁₇Se₁₅ nanoparticles. Time dependent studies indicate that the preparation of Pd₁₇Se₁₅ nanoparticles from molecular precursor proceeds via the involvement of Pd nanoparticles.