Single metal atom catalysts exhibit extraordinary activity in a large number of reactions, and some two-dimension materials (such as graphene and h-BN) are found to be the prominent support to stabilize the single metal atom. The CO oxidation reaction on single Pd atom supported by two-dimensional h-BN is investigated systematically by using dispersion-corrected density functional theory study. The great stability of the h-BN supported single Pd atom is revealed, and the single Pd atom prefers to stay at the boron vacancy. Three proposed mechanisms (Eley-Rideal, Langmuir-Hinshelwood, and a "new" termolecular Eley-Rideal) of the CO oxidation were investigated, and two of them (the traditional Langmuir-Hinshelwood mechanism and the new termolecular Eley-Rideal mechanism) are found with the rather small reaction barriers of 0.66 eV and 0.39 eV for their rate-limiting steps, respectively, which suggests that the CO oxidation could proceed at a low temperature on single Pd atom doped h-BN. The current study will help to understand the various mechanisms of the CO oxidation and shed light on the design of the CO oxidation catalyst, especially based on the concept of single metal atom.