Highly dispersed and ultrafine Pd nanoparticles deposited on carbon, silica, and alumina supports were prepared by chemical reduction (CR) using NaBH4. For comparison, supported Pd catalysts were also prepared through impregnation followed by thermal reduction (TR) and capillary inclusion of the colloidal Pd NPs (CI). In FAL hydrogenation, FAL was converted via two distinct pathways to produce either furan or furfuryl alcohol (FA). Subsequently, furan and FA were converted to tetrahydrofuran and tetrahydrofurfuryl alcohol (THFA), respectively, or 2-methylfuran. To verify the efficiency of the preparation methods, the size of the Pd NPs, the metal dispersion, and the type of supports were correlated with the reaction results of FAL hydrogenation. It was confirmed that the 5 wt% Pd/C catalysts possessed highly dispersed small Pd NPs with large Pd surface areas, which resulted in high conversions and selectivity towards THFA compared to conventional supported catalysts.