The actin scaffold protein palladin regulates both normal cell migration and invasive cell motility, processes that require the coordinated regulation of actin dynamics. Palladin localizes to actin-rich protrusions and has a well-documented effect on metastasis of invasive cancers. However, its potential effects on actin dynamics have remained elusive. Here, we show that the C-terminal immunoglobulin-like domain of palladin (Ig3) that is directly responsible for actin binding and bundling also potently nucleates the formation of actin filaments in vitro.