A carbon-supported palladium catalyst modified by non-metal phosphorus(PdP/C) has been developed as an oxygen reduction catalyst for direct methanol fuel cells.The PdP/C catalyst was prepared by the sodium hypophosphite reduction method. The as-prepared Pd nanoparticles have a narrow size distribution with an average diameter of 2 nm. Energy dispersive X-ray analysis (EDX), X-ray photoelectron spectroscopy (XPS), and X-ray diffraction (XRD) results indicate that P enters into the crystal lattice of Pd and forms an alloy. The PdP/C catalyst has an oxygen reduction reaction (ORR) activity comparable to the commercial Pt/C catalyst and a higher activity than the Pd/C catalyst synthesized by the conventional NaBH4 reduction method. Its high catalytic activity can be attributed to its small size, lower relative crystallinity, and the formation of PdP alloy. (c) 2008 Elsevier B.V. All rights reserved.