We report on the electrical resistivity, magnetic susceptibility and heat-capacity measurements on a new intermetallic compound CePd5Al2, crystallizing in the ZrNi2Al5-type tetragonal structure, with lattice parameters a = 4.156 A and c = 14.883 A. The compound presents Kondo lattice behavior and an easy-plane antiferromagnetic ground state with two magnetic transitions at 2.9 K and 3.9 K. The Sommerfeld coefficient is estimated as 60 mJ/mol K^2.