Measurements have been made of the magnetic susceptibility of PdH and PdD alloys over the temperature range between 4K and 300K. A series of specimens was studied with composition ranging from 0.0 to 0.7 H or D atoms/Pd atom. The results are interpreted in terms of the two phase nature of the PdH and PdD systems. For the alpha phase the susceptibility is large and varies with temperature in a manner similar to that of pure palladium, while the susceptibility of the beta phase is slightly diamagnetic and almost independent of temperature. The temperature dependence of the susceptibility of both pure Pd and alpha phase PdH agrees well with a theoretical relation given by Misawa (1970) based on treating the electrons in palladium as a nearly ferromagnetic Fermi liquid.