Pd-Y(2)O(3) stabilized ZrO(2) (YSZ) composite cathodes are prepared by conventional mechanical mixing and infiltration methods. In the case of infiltration, thermal decomposition and chemical reduction processes are used to form Pd particles on the YSZ scaffold. The phase structure, morphology and electrochemical performance of the Pd-YSZ composite cathodes are characterized by X-ray diffraction (XRD), scanning electron microscope (SEM), transmission electron microscope (TEM) and electrochemical impedance spectroscopy (EIS). The performance of mechanically mixed Pd-YSZ composite cathodes is inadequate due to significant growth and sporadical distribution of Pd particles. The 5 wt.% Pd-loaded cathode prepared by infiltration-thermal decomposition process shows the lowest polarization resistance, i.e. between 0.042 Omega cm(2) and 1.5 Omega cm(2) in the temperature range of 850-600 degrees C, benefited from the formation of nano-sized Pd particles and the presence of well connected Pd network. The effect of Pd loading on the performance of the infiltrated-thermal decomposed Pd-YSZ composite cathodes is also evaluated, 5 wt.% Pd loading results in the lowest polarization resistances. Copyright (C) 2011, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.