We report the observation of the resolved fine structure of Gd³⁺ in single crystals of Pd. Analysis in terms of the classical theory for the Gd³⁺ ion in a cubic crystal field¹ permits us to deduce the crystal field parameter, b₄, to be + 29 ± 2 G. Anomalous temperature dependence of the spectrum of the highest concentration of Gd sample leads us to believe that exchange narrowing processes such as those found recently for Gd in Au² may be operative. A discrepancy exists between the values obtained for the exchange constant between the localised moment and conduction electrons deduced from measurements of the local moment g-shift and temperature dependence of the resonance linewidth.