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Two different chitosan supported palladium based catalysts were prepared, wherein dispersed palladium nanoparticles were obtained via chemical reduction supported on chitosan (Pd/CTS) and amine functionalized modified chitosan (Pd/AFCTS). The catalytic activity of the Pd-based catalysts, Pd/CTS and Pd/AFCTS, were assessed in the hydrogenation of styrene oxide to 2-phenyl ethanol. Both Pd-based catalysts enhanced the formation of the desired 2-phenyl ethanol in contrast to a conventional Pd/C catalyst without the assistance of inorganic or organic base. A considerable influence on the conversion and selectivity was observed in the case of Pd/AFCTS, consisting of palladium nanoparticles stabilized and dispersed on amine-functionalized chitosan matrix, affording complete conversion of styrene oxide with 98% selectivity to 2-phenyl ethanol. The catalyst Pd/AFCTS has also been recycled without significant loss of activity and selectivity.