We report on the anomalous spin relaxation behavior of conduction electrons in carbon nanofilaments produced by decomposition of acetylene on Pd nanoparticles. Thanks to first-principle calculations, we found that adsorption of Pd above the center of a hexagon in the carbon lattice is energetically favorable, and that pi-d orbital interactions probably lead to an efficient spin relaxation mechanism involving spin-orbit coupling. Incorporation of Pd impurities during carbon growth implies that nanofilament length depends on initial particle size, as actually observed. (C) 2003 Elsevier Ltd. All rights reserved.