We herein report a facile hydrothermal approach to prepare well-dispersed nitrogen-dopedgraphene quantum dots-supported Pd (N-GQDs/Pd) nanocomposites of a narrow size distribution with diameter of 4.8 +/- 0.2 nm. The N-GQDs/Pd nanocomposite demonstrates an excellent electrocatalytic activity for the methanol oxidation reaction in an alkaline medium when compared with the graphene sheets-supported Pd nanocomposites (GS/Pd), graphene quantum dots supported Pd nanocomposites (GQDs/Pd) and commercial palladium catalyst (Pd/C). The N-GQDs/Pd of good dispersion and, small and narrow size distribution offers superior electrical conductivity and remarkable cycling stability. In addition, it offers promising and attractive practical opportunities for electronic materials which possess high catalytic activity and stability, yet the noble metal usage is reduced. This study demonstrated the potential use of N-GQDs/Pd as new electrocatalytic nanomaterials for direct methanol fuel cells.