In recent years, palladium-coated copper (PdCu) wire has been widely used in microelectronic packaging. The electronic flame off (EFO) current setting will affect the distribution of palladium (Pd) during the free air ball (FAB) formation of PdCu wire. This study investigates the influence of EFO current settings on Pd distribution in the FAB and the bonded ball. The distribution and concentration of Pd is observed by using an electron probe micro analyzer (EPMA). Mechanical tests are used to evaluate the bond strength of the first bond. A high temperature storage test (HTST) is performed on the packaged IC at 200 °C for 500 h and 1000 h. The results indicate that different EFO current settings cause either complete or partial Pd coverage on FABs, which directly affects the Pd distribution at the bonded ball interface. The wire pull and ball shear tests show the bond strength decrease under three EFO current settings after HTST. This confirms that although Pd can serve as a protective layer for the bonded ball against attack from halides from within the epoxy molding compound (EMC), incomplete Pd coating and formation of the alloy may actually aggravate the corrosion on bonded ball.