The research presented in this paper addresses the question: How does the addition of a small amount of LaCoO3 impact the activity of a Co3O4 catalyst? By testing such a catalyst in N2O decomposition under conditions at which the thermal decomposition of Co3O4 to CoO is possible, one gains unique insight into how the two phases interact. The activity of such a catalyst increases in the entire studied temperature range, unlike the activity of the undoped cobalt catalyst which is lower at 850 °C than at 800 °C due to the reduction of Co3O4 to CoO. XRD measurements showed that CoO was also the main cobalt oxide present in the Co3.5La catalyst after operating at 850 °C, as did the XPS measurements, but there was no drop of activity associated with this change. The influence of NO, O2 and H2O on the activity of the new catalyst, Co3.5La, was determined. Lack of positive effect of NO, a known oxygen scavenger, on the activity was noticed at all temperatures, showing that the effect of LaCoO3 is probably due to increased oxygen desorption. Temperature programed oxidation (TPO) tests showed that the beneficial effects of the presence of LaCoO3 on the activity of cobalt oxide at 850 °C were probably caused by enhanced diffusion of O2− anions through the entire catalyst, which facilitates desorption of oxygen molecules from the surface.