Copolymerization of carbon monoxide with 1,3‐cyclopentadiene (CPD) by palladium complexes, [Pd(CH3CN)4−n (PPh3)n] (BF4)2, n = 1–3 (especially n = 1), was studied at 60°C. Results of elementary analysis, infrared spectra, and NMR spectra showed that copolymers containing ketone and ring structures were produced. Phosphorus compounds such as PPh3 were found to be more effective stabilizing ligands for the catalytic activity compared to arsenic or nitric ligands. A higher activity of the catalyst for the copolymerization of CPD with carbon monoxide was observed in noncoordinating solvents such as CHCl3 even at a pressure as low as 300 psi. The amount of 1,2 structure for the CPD‐CO copolymer increased as the polarity of solvent increased. The copolymer was confirmed to be partially crystalline by the x‐ray diffraction. TGA shows that weight loss of copolymer starts at 120°C and the maximum peak of decomposition occurs at 469°C. © 1993 John Wiley & Sons, Inc.