The chemical state of Pd at the surfaces of two sizes of Pd powders and ceria-supported Pd during low-temperature CO oxidation has been studied using X-ray photoelectron spectroscopy (XPS). During oxidation in O-2, metallic Pd powder is converted into PdO, and the thickness of the PdO layer increases with increasing reaction temperature. A similar Pd oxidation process occurs during the catalytic CO oxidation reaction, but the extent of the Pd oxidation is less due to the presence of CO which is a reducing agent. The reaction rate data indicate that the larger size Pd powder is about three times more active than the smaller size Pd powder on a surface area basis at 160 degrees C. Catalytic CO oxidation data obtained from 10 wt % Pd supported on nanocrystalline ceria powder indicate that there is a strong chemical interaction between the ceria and the supported Pd. The Pd is present as PdO on the fresh catalyst. During reaction, small amounts of Pd metal and PdO2 are formed at 50 degrees C while less Pd metal and only a small amount of PdO2 are present after running the reaction at 110 degrees C. At 50 degrees C, the catalytic activity decays rapidly due to accumulation of carbonate or bicarbonate species on the surface. This decay does not occur at 110 degrees C due to decomposition of the bicarbonate species.