Bimetallic 15 nm Pd-core Rh-shell Rh1-xPdx nanoparticle catalysts have been synthesized and studied in CO oxidation by NO. The catalysts exhibited composition-dependent activity enhancement (synergy) in CO oxidation in high NO pressures. The observed synergetic effect is attributed to the favorable adsorption of CO on Pd in NO-rich conditions. The Pd-rich bimetallic catalysts deactivated after many hours of oxidation of CO by NO. After catalyst deactivation, product formation was proportional to the Rh molar fraction within the bimetallic nanoparticles. The deactivated catalysts were regenerated by heating the sample in UHV. This regeneration suggests that the deactivation was caused by the adsorption of nitrogen atoms on Pd sites.