Elemental powders consisted of chemical composition of Ti49Zr26Ni25−xPdx (x=0, 1, 3, 6) were mechanically alloyed and annealed subsequently, and the discharge performance of the electrodes was measured by a three-electrode cell at room temperature. The annealing after mechanical alloying caused a formation of the icosahedral quasicrystal phase with a Ti2Ni type crystal, C14 Laves and α-Ti/Zr phases. The quasilattice constant increased with increasing amount of Pd substituted for Ni up to 3at.% due to difference in atomic radius between Pd and Ni. The maximum discharge capacity achieved was about 220mAh/g from a (Ti49Zr26Ni22Pd3) electrode at the first discharge process.