I am synthesizing Palladium nano particles via plant reduction. After purifying the particles, XRD is showing very small diffraction peaks. Is it because the particles are amorphous and still impure?
Yes, you write correctly. Reducers in plant extracts have complex molecules. They first cover the amorphous, and then the internal crystalline part of the nanoparticles.
I would say that your crystallites are quite small. Since their surface is comparatively big you may observe additional relaxation which disturbes the periodicity remarkably so that you also observe something which is interpreted in bulk materials as lattice strain. Remarkable is the strong asymmetry of your first peaks. This might be caused by some non-stochiometry.