Combustion synthesis is a quick, straightforward preparation process to produce homogeneous, very fine, crystalline and unagglomerated multicomponent oxide ceramic powders, without the intermediate decomposition and/or calcining steps, and was used to prepare a palladium/alumina catalyst oxide precursor. The present work describes the synthesis of the catalyst and compares its performance, in the acetic acid formation from ethanol oxidation reaction, with that of the equivalent catalyst synthesized via the usual technique of an independent support impregnation step. The phase formation and characteristics of the powder produced (morphology and grain size) were investigated and are also discussed. Results show that the combustion synthesis produces solids with specific surface areas 60% higher than those obtained by the conventional technique. The catalytic test results show that the combustion synthesis catalysts have higher activity and acetic acid selectivity, in the ethanol oxidation reaction.