The paper studies the direct oxidation of ethanol and CO on PdO/Ce0.75Zr0.25O2 and Ce(0.75)Zr(0.2)5O(2) catalysts. Characterization of catalysts is carried out by temperature-programmed desorption (TPD), temperature-programmed surface reaction (TPSR) techniques to correlate with catalytic properties and the effect of supports on PdO. The simple Ce0.75Zr0.25O2 is in less active for ethanol and CO oxidation. After loaded with PdO, the catalytic activity enhances effectively. Combined the ethanol and CO oxidation activity with CO-TPD and ethanol-TPSR profiles, we can find the more intensive of CO2 desorption peaks, the higher it is for the oxidation of CO and ethanol. Conversion versus yield plot shows the acetaldehyde is the primary product, the secondary products are acetic acid, ethyl acetate and ethylene, and the final product is CO2. A simplified reaction scheme (not surface mechanism) is suggested that ethanol is first oxidized to form intermediate of acetaldehyde, then acetic acid, ethyl acetate and ethylene formed going with the formation of acetaldehyde, acetic acid, ethyl acetate; finally these byproducts are further oxidized to produce CO2. PdO/Ce0.75Zr0.25O2 catalyst has much higher catalytic activity not only for the oxidation of ethanol but also for CO oxidation. Thus the CO poison effect on PdO/Ce0.75Zr0.25O2 catalysts can be decreased and they have the feasibility for application in direct alcohol fuel cell (DAFC) with high efficiency.