The amphiphile PS-750-M generates stable, phosphine ligand-free, and catalytically active ultrasmall Pd(II) nanoparticles (NPs) from Pd(OAc)2, preventing their precipitation, polymerization, and oxidation state changes. PS-750-M directly interacts with Pd(II) NP surfaces, as confirmed by high-resolution mass spectrometry and IR spectroscopy, resulting in their high stability. The Pd cations in NPs are most likely held together by hydroxides and acetate ions. The NPs were characterized by HRTEM, revealing their morphology and particle size distribution, and by HRMS and IR, providing evidence for NP-amphiphile interaction. The NP catalytic activity was examined in the context of oxidative Mizoroki-Heck-type couplings in water at room temperature. Hot filtration, hot extraction, and three-phase tests indicate heterogeneous catalysis occurring at the micellar interface rather than homogeneous catalysis occurring in the solution. NMR studies indicate that the catalytic activity stems from metal cation-π interactions of the styrene along with transmetalation by the arylboronic acid, followed by insertion and β-H elimination to furnish the coupled product along with the reoxidation of Pd by benzoquinone to complete the catalytic cycle. This method is very mild and sustainable, both in terms of NP synthesis and subsequent catalysis, and shows broad substrate scope while circumventing the need for organic solvents for this important class of couplings.