Abstract: Pd/CeO2 catalysts prepared by a single step solution combustion synthesis (SCS) have been tested for the catalytic combustion of methane and their activity has been compared with Pd/CeO2 catalysts prepared by incipient wetness technique (IW). The materials have been characterized by XRD analysis, surface area measurement and TPO experiments. The results indicate that SCS Pd/CeO2 has a higher activity compared to IW samples. This has been ascribed to the formation of a Ce1-xPdxO2- solid solution with improved redox properties. Moreover, the additional oxide-ion vacancies enhance O2 dissociation leading to a highly active catalyst.