The effect of addition of In and Pb on the reduction of N 2 O by CO was studied over SiO 2 supported Pd catalysts, using a closed gas circulation system as well as in-situ infrared spectroscopy. Formation of intermetallic compounds such as Pd 0.48 In 0.52 , Pd 3 Pb and Pd 3 Pb 2 was observed which caused a drastic enhancement of the rate of N 2 formation. The infrared spectroscopic analyses revealed a weakening of the adsorption strength of CO on Pd metal by the formation of intermetallic compounds, which is likely the main reason for the enhancement of the reaction rate. From a kinetic investigation as well as in situ FT-IR observation during the N 2 O-CO reaction, a redox mechanism was proposed involving the oxidation of the surface by N 2 O followed by its reduction by CO. Over Pd/SiO 2 , the former process seems to be the rate limiting step because of the inhibition of N 2 O activation by strongly adsorbed CO. By adding In or Pb, the rate limiting step shifted to the latter process, which resulted in a large enhancement in the rate of N 2 formation.