Nafion is modified by incorporating poly(1-vinylimidazole)/Pd composites into the ion cluster channels of the membrane. The poly(1-vinylimidazole)/Pd-impregnated (PVI/Pd-impregnated) membranes is characterized by means of X-ray photoelectron spectroscopy (XPS), proton conductivity and methanol permeability measurements and compared with those of the untreated Nafion. The dependence of the membrane proton conductivity and methanol permeability on the poly(1-vinylimidazole) (PVI) and palladium contents in the PVI/Pd-impregnated Nafion is studied. The performance of the cells employing the PVI/Pd-impregnated Nafion is evaluated using a direct methanol fuel cell (DMFC) unit cell. It is found that the best cell performance is obtained when Nafion is impregnated with the PVI/Pd composite solution for 20 h. This result suggests that there exists an optimum content of palladium and PVI in the modified membrane to obtain a high-proton conductivity and low-methanol permeability that result in a high-cell performance. (C) 2008 Elsevier B.V. All rights reserved