In situ diffuse reflectance infrared Fourier transform spectroscopy has been used to distinguish surface hydroxyl groups on Al 2 O 3 and PdO/Al 2 O 3 model catalysts calcined at 500−900 °C. Employing the operando approach, the formation of surface hydroxyl groups has been correlated to the methane oxidation activity for PdO/Al 2 O 3 catalysts using a PdO powder sample as reference. The results show that the alumina support stabilizes active PdO particles leading to enhanced apparent methane turnover frequency (TOF), which decreases slowly in dry conditions due to alumina hydroxylation. Wet conditions cause severe hydroxylation that is detrimental for the methane TOF. The hydroxylation follows two different routes, i.e., spillover of hydrogen-containing species to the PdO-Al 2 O 3 boundary and/or the close proximity of the supported PdO particles and under wet conditions also dissociation of gas phase water on the entire alumina surface. Both hydroxylation routes obey varying kinetics such that near saturation is reached quickly (minutes) followed by a continuous slow growth for prolonged exposure times (hours). At low temperatures, inhibition of palladium active sites on the rim of the PdO particles close to alumina seems to be of particular importance for the observed detrimental effect of water, whereas water induced morphological changes (no sintering observed) of the PdO particles play a minor role.