Composite anodes consisting of Pd-substituted (La,Sr)CrO3-delta mixed with 50 wt% Ce0.9Gd0.1O2-delta were tested in La0.9Sr0.1Ga0.8Mg0.2O3-delta-electrolyte supported fuel cells at 800 degrees C with humidified H-2 fuel. Low anode polarization resistance was observed during the first several hours of operation, explained by the nucleation of Pd nano-particles on perovskite particle surfaces. Anode performance then degraded gradually before stabilizing. Redox cycling repeatedly restored the anodes to their initial peak performance, followed again by degradation. This regenerative behavior was explained by the observation that the Pd nano-particles were removed by oxidation, and then re-nucleated upon reduction. (C) 2010 Published by Elsevier B.V.