In search for cost-effective anode material of direct ethanol fuel cell, nanoparticles of Pd, Cu and PdxCu1-x alloy have been synthesized in absence of any capping agent by one pot reduction and co-reduction of respective metal precursors at room temperature. The spectroscopic and microscopic studies reveal that the particles are loosely agglomerated interconnected spherical shaped nanoalloy with a radius in the range of 17-25 nm. Electrochemical studies of graphite supported synthesized nanoparticles reveal that Pd0.90Cu0.10/C is the best and exhibits synergistic catalytic activity. This electrode shows the highest exchange current density for ethanol oxidation reaction and higher catalytic activity for oxidizing acetaldehyde. A reaction mechanism is also proposed in the study. (C) 2014 Elsevier Ltd. All rights reserved.