A method for selectively separating and recovering palladium from an aqueous palladium/tin catalyst solution. The method includes the steps of adjusting the pH of the aqueous solution to a specified pH range thereby precipitating the tin, and producing a soluble form a palladium. The solution can be either pre-filtered or settled and subsequently processed through ion exchange resin in a conventional manner, or processed in an upflow direction through an at least partially fluidized bed of ion exchange resin to remove and concentrate the palladium for recovery.