A method of selectively hydrogenating a conjugated diene by using a supported ionic liquid nano-palladium catalyst. The supported ionic liquid nano-palladium catalyst, hydrogen and a reactant having the conjugated diene react at a temperature ranging from 40 to 120° C. and a pressure ranging from 100 to 400 psig. A ratio of the catalyst to the reactant ranges from 1/20 to 1/250 (g/ml).
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