Aberration-corrected transmission electron microscopy was used to study atomic-scale processes in Pd-LaFeO3 catalysts. Clear evidence for diffusion of Pd into LaFeO3 and out of LaFe0.95Pd0.05O3-delta under high-temperature oxidizing and reducing conditions, respectively, was found, but the extent to which these processes occurred was quite limited. These observations cast doubt that such phenomena play a significant role in a postulated mechanism of self-regeneration of this system as an automotive exhaust-gas catalyst.