We report a large third-order nonlinear optical response of palladium diselenide (PdSe₂) films – a two-dimensional (2D) noble metal dichalcogenide material. Both open-aperture (OA) and closed-aperture (CA) Z-scan measurements are performed with a femtosecond pulsed laser at 800 nm to investigate the nonlinear absorption and nonlinear refraction, respectively. In the OA experiment, we observe optical limiting behaviour originating from large two photo absorption (TPA) in the PdSe₂ film of β = 3.26 ×10^-8 m/W. In the CA experiment, we measure a peak-valley response corresponding to a large and negative Kerr nonlinearity of n₂ = -1.33×10^-15 m²/W – two orders of magnitude larger than bulk silicon. We also characterize the variation of n₂ as a function of laser intensity, observing that n₂ decreases in magnitude with incident laser intensity, becoming saturated at n₂ = -9.96×10^-16 m²/W at high intensities. These results verify the large third-order nonlinear optical response of 2D PdSe₂ as well as its strong potential for high performance nonlinear photonic devices.