The most important model catalytic reaction to test the catalytic activity of metal nanoparticles is the reduction of 4-nitrophenol to 4-aminophenol by sodium borohydride as it can be precisely monitored by UV–vis spectroscopy with high accuracy. This work presents the catalytic reduction of 4-nitrophenol (4-Nip) to 4-aminophenol (4-Amp) in the presence of Pd nanoparticles and sodium borohydride as reductants in water. We first evaluate the kinetics using classical pseudo first-order kinetics. We report the effects of different initial 4-Nip and NaBH4 concentrations, reaction temperatures, and mass of Pd nanoparticles used for catalytic reduction. The thermodynamic parameters (activation energy, enthalpy, and entropy) were also determined. Results show that the kinetics are highly dependent on the reactant ratio and that pseudo first-order simplification is not always fit to describe the kinetics of the reaction. Assuming that all steps of this reaction proceed only on the surface of Pd nanoparticles, we applied a Langmuir−Hinshelwood model to describe the kinetics of the reaction. Experimental data of the decay rate of 4-nitrophenol were successfully fitted to the theoretical values obtained from the Langmuir–Hinshelwood model and all thermodynamic parameters, the true rate constant k, as well as the adsorption constants of 4-Nip, and BH4− (K4-Nip and KBH4−) were determined for each temperature.