Nowadays, extraction and recovery of metals from industrial wastewater has become a major concern owing to the toxicity of heavy metals and economic value of precious metals such as gold, palladium and silver. In this research, the extraction of palladium from simulated aqueous solution using liquid-liquid extraction was studied. The organic phase containing bis(2,4,4-trimethylpentyl) monothiophosphinic acid (Cyanex 302) as a carrier was used. Several parameters such as concentration of carrier, type of diluents and stripping agent type and its concentration were investigated. The results showed that at the favourable condition of 0.1 mM Cyanex 302 in kerosene as a diluent, and 2.0 M of thiourea in 1.0 M sulphuric acid as a stripping agent, almost 100% of palladium was extracted from the liquid waste solution and 90% was recovered in the receiving phase.