The modification of graphene band structure, in particular via induced spin–orbit coupling, is currently a great challenge for the scientific community from both a fundamental and applied point of view. Here, we investigate the modification of the electronic structure of graphene (gr) initially adsorbed on Ir(111) via intercalation of one monolayer Pd by means of angle-resolved photoelectron spectroscopy and density functional theory. We reveal that for the gr/Pd/Ir(111) intercalated system, a spin splitting of graphene π states higher than 200 meV is present near the graphene K point. This spin separation arises from the hybridization of the graphene valence band states with spin-polarized quantum well states of a single Pd layer on Ir(111). Our results demonstrate that the proposed approach on the tailoring of the dimensionality of heavy materials interfaced with a graphene layer might lead to a giant spin–orbit splitting of the graphene valence band states.