Well-defined Pd chains were assembled from single atoms on a NiA1(110) surface with the tip of a scanning tunneling microscope. The electronic properties of the chains were determined by spatially resolved conductance measurements, revealing a series of quantum well states with parabolic dispersion. The particle-in-a-box states in Pd chains show higher onset energy and larger effective mass than those in Au chains investigated before, reflecting the influence of elemental composition on one-dimensional electronic systems. The intrinsic widths and spectral intensities of Pd induced states provide information on lifetime and spatial localization of states in the atomic chain.