Palladium is widely adapted in industrial processes such as catalytic converters or ceramic capacitors. It also holds biomedical applications such as acting as a drug carrier and is utilised in cancer treatment. However, palladium is an environmental pollutant and difficult to be recycled. In this project, twenty five palladium(II) reducing peptides (PdRp) are modified from a selection of known palladium binding peptides. The PdRp are fused to a cellulose binding domain 3 (CBD 3) derived from Clostridium thermocellum which acts as an affinity tag. The PdRp-CBD complex is expressed in Escherichia coli BL21(DE3) in pETBlue-2 vector and purified using regenerated amorphous cellulose (RAC). Peptide-Palladium interactions are determined by computational methods of Monte Carlo simulated bond fluctuation model. Downstream analysis and further experiments will be performed to determine the efficiency and performance of the PdRp with potassium hexachloropalladate.