High levels of residual palladium can lead to serious negative health effects. Carbon monoxide (CO) is a significant gasotransmitter in transporting intermolecular and intramolecular signals to balance several physiological processes. Therefore, there is a need for rapid detection of CO and palladium residue. To address these issues, we have designed a novel light-up fluorescent probe for the detection of Pd and CO. It can not only detect Pd and CO selectively with a remarkable chromogenic and red fluorescent response over other metal ions allowing detection with naked eyes but also discriminate Pd0 and Pd2+/Pd4+ species. The detection reaction is confirmed by HPLC analysis. The probe demonstrates biocompatibility and mitochondrial target ability for potential biological applications. The practical applications based on drug residue and soil analysis, and smartphone have been successfully performed. Bioimaging of the concentration change of Pd and CO in HeLa cells using the probe is successfully applied. Therefore, the present approach can provide early diagnosis of Pd and CO with low detection limit, low cytotoxicity, high selectivity, and sensitivity.