Palladium cation exchanged zeolites (ZSM-5, mordenite and ferrierite) were studied as catalysts for methane combustion. Pd-zeolites showed much higher activities than PdO/Al2O3. For comparable palladium loadings, PdO/Al2O3 requires a reaction temperature of ca. 70-80-degrees-C higher than Pd-ZSM-5 for conversions between 50-100%. The catalytic activity of Pd-ZSM-5 seems to be related to its reducibility. Temperature-programmed reduction experiments with carbon monoxide showed a lower reduction temperature (ca. 157-degrees-C) for Pd-ZSM-5 than for PdO/Al2O3 (225-degrees-C). Further, the positioning of the palladium by ion exchange offers a highly dispersed form of Pd(II) supported on the high surface area zeolite.