Hydrogen energy is a relatively new type of energy. It is a source for fuel cells. How to produce and use hydrogen energy has become an important issue. Porous stainless steel (PSS) has shown advantages in the membrane module as well as its close thermal expansion coefficient to that of Pd (Palladium). Palladium-based membranes are commercially used for hydrogen purification. Silver is added to palladium to prevent hydrogen embrittlement that takes place below near 573 K for pure palladium and to increase the hydrogen flux. The present investigation is to prepare dense, defect free palladium (Pd) and palladium-silver (Pd-Ag) alloy membranes on porous stainless steel by the sequential electroless plating technique. The characterizations of the Pd-Ag/PSS membranes were performed using X-ray diffractometer (XRD). XRD reflection peaks indicated that palladium and silver together formed a homogeneous alloy after annealing. The relation between the average lattice spacing calculated from the XRD pattern and Ag wt% in Pd-Ag/PSS alloy was established, which can be used with the XRD measurement to estimate the membrane composition.