A study of nitrous oxide (N2O) reduction with methane (CH4) and propene (C3H6) in the presence of oxygen (5%) over Ag/Al2O3, Rh/Al2O3 and Ag-Rh/Al2O3 catalysts, with Ag and Rh loadings of 5 wt% and 0.05 wt% respectively, has been performed. From the results, it was observed that the Ag-Rh bimetallic catalyst was the most active for both nitrous oxide removal (more than 95%) and hydrocarbon oxidation. This high activity seems to be connected with a synergistic effect between Ag and Rh. The findings from X-ray diffraction and X-ray photoelectron spectroscopy studies showed also, that there were no strong interactions (eg alloying) between Ag and Rh. (c) 2005 Society of Chemical Industry.