Pt@Pd/C nanoparticle was prepared by the galvanic displacement reaction between Pt4+ and Pd. A simple synthesis strategy was followed to prepare carbon-supported Pd nanostructure. Pt modified Pd nanostructure on carbon was characterized by transmission electron microscopy, X-ray diffraction, X-ray photoelectron spectroscopy, Cyclic Voltammetry and Linear Sweep Voltammetry. Pt@Pd/C electro-catalyst exhibited higher catalytic activity toward oxygen reduction reaction with excellent methanol tolerance than Pt/C. Pt@Pd/C catalyst showed consistent catalytic activity before and after the durability study. Higher methanol tolerance of Pt@Pd/C with less Pt content than Pt/C suggests that it could be a potential alternative cathode electro-catalyst for DMFCs. Copyright (c) 2012, Hydrogen Energy Publications, LLC. Published by Elsevier Ltd. All rights reserved.