A carbon supported Pt-Pd catalyst with a Pt:Pd atomic ratio 77:23 was prepared by reduction of metal precursors with formic acid and characterized by EDX, XRD and XPS techniques. A decrease of the lattice parameter compared with that of pure Pt was observed, indicating the formation of a Pt-Pd alloy. Tests in H2SO4 Solution in the absence of ethanol showed that the Pd-containing is slightly more active than pure Pt for the oxygen reduction reaction (ORR). In the presence of ethanol a larger increase in over-potential of the ORR on pure Pt than that on Pt-Pd was found, indicating a higher ethanol tolerance of the binary catalyst. The enhanced performance at 90 degrees C of the direct ethanol fuel cell with Pt-Pd/C as cathode material confirmed the results of half cell tests, and was essentially ascribed to a reduced ethanol adsorption on Pt-Pd. (c) 2008 International Association for Hydrogen Energy. Published by Elsevier Ltd. All rights reserved.