Mg-5聽at.% Pd powder composites derived from multilayered films of Mg and Pd deposited in Pd/Mg/Pd/Mg/Pd layer configuration by thermal evaporation reversibly store about 3.5聽wt.% hydrogen up to 15 cycles under mild conditions of pressure and temperature. Hydrogenation takes place at 0.15聽MPa hydrogen pressure while dehydrogenation occurs in a dynamic rotary vacuum. Each process is completed in about three hours. The temperature of a dehydrogenation or hydrogenation step is about 5-10聽K higher than the preceding hydrogenation or dehydrogenation step. The hydrogenation temperature of the first cycle is 343聽K whereas the dehydrogenation temperature of the 15th cycle is 423聽K. The hydrogen storage capacity of composite is the manifestation of fine-grained microstructure of Mg and the catalytic properties of Pd. It declines beyond 423聽K due to the exhaustion of metallic Pd as a result of the formation of Mg-Pd intermetallic compounds. This approach presents a simple and rapid method of preparing Mg-Pd composites for hydrogen storage applications.