We report the observation of the electron paramagnetic resonance spectrum of Dy³⁺ in Pd single crystals. The observed resonance spectrum contains four main lines, one of which varies strongly with crystal orientation suggesting the ion ground state to be a Γ₈ quartet. The weak hyperfine lines due to the isotopes Dy¹⁶¹ and Dy¹⁶³ have also been observed. The results are discussed in terms of Bleaney's Hamiltonian for a Γ₈ quartet.