The application of Pd in three-way catalyst represents a significant technology breakthrough for the removal of pollutants from gasoline powered vehicle exhaust gas. Pd shows superior catalytic activity for hydrocarbon (HCs) oxidation and thermal stability to the conventional Pt/Rh catalyst. However, Pd catalysts are more susceptible to chemical poisoning. This work summarizes the progress of the Pd-based three-way catalyst and its related technologies. The state of Pd in the reaction, the support and oxygen storage material, the promoters, and preparation methods on the catalytic performance are reviewed. The process and catalyst configurations, e.g., close-couple (CCC), dual bricks, layered, and zone-coated catalysts, are described and compared. The advances in the understanding of the reaction and deactivation mechanisms in the three-way catalysis systems are also discussed.