Carbon-supported palladium-polypyrrole ͑Pd-PPy/C͒ nanocomposite was synthesized by oxidative polymerization of pyrrole and reduction of palladium͑II͒ precursor salt in the presence of Vulcan XC-72R. The Pd-PPy/C composites were characterized by X-ray diffraction ͑XRD͒, Fourier transform IR, X-ray photoelectron spectroscopy ͑XPS͒, thermogravimetric analysis ͑TGA͒, and transmission electron microscopy ͑TEM͒ techniques. The XRD analysis of Pd-PPy/C shows the formation of the face-centered cubic structure of Pd particles and the mean particle size calculated from TEM was 5.3 Ϯ 2.0 nm. The electrochemical stability of Pd-PPy/C was examined by cyclic voltammetry in an acid solution. The thermal stability and Pd loading in the composite was assessed using TGA. The introduction of Pd in the conducting PPy/C matrix gives better catalytic activity toward oxygen reduction with resistance to methanol oxidation. This was further elucidated by the XPS analysis showing d-band vacancy that is attributed to metal-polymer interaction. From the polarization studies, it is observed that even in the presence of methanol there is no significant cathodic shift in the half-wave potential, revealing that Pd-PPy/C is tolerant to methanol. Rotating ring disk electrode studies show that there is only a negligible quantity of hydrogen peroxide produced in the potential region where its production is expected to be high. This confirms that Pd-PPy/C catalyzes reduction of oxygen directly to water through a four-electron pathway. © 2010 The Electrochemical Society. ͓DOI: 10.1149/1.3489266͔ All rights reserved. Methanol crossover from anode to cathode poses a big challenge for the development of direct methanol fuel cells ͑DMFCs͒ because it produces a mixed potential and reduces cell performance. To circumvent this problem, considerable effort has been invested in finding novel methanol-tolerant cathode catalysts with good stability and catalytic activity for oxygen reduction. In state-of-the-art DMFCs, ͑a͒ chevral-phase-type compounds, 1,2 ͑b͒ N 4 macrocyclic complexes, 3-5 ͑c͒ bimetallic platinum and palladium based alloys involving transition metals and p-block metals, 6-13 and ͑d͒ trimetallic alloys 14,15 are reported as DMFC cathode catalysts that show methanol tolerance. In one or the other ways, these catalysts are successful to some extent in achieving the required performance. The synthesis of methanol-tolerant cathode materials with high oxygen reduction activity and stability in fuel cell operating conditions is a challenge to the commercialization of DMFCs. 16 A variety of polymer-metal systems [17][18][19][20] involving polymers such as polyaniline, polypyrrole, poly͑3,4-ethylenedioxythiophene͒, etc., and metals such as Pt, Pd, Au, etc., are known for chemical and electrocatalytic applications. Mimicking metal-porphyrin complexes using heterocyclic polymer-metal composites is one of the novel ways of finding metal-N sites, which are known for the oxygen reduction reaction ͑ORR͒ catalytic activity. 21,22 Recently, Bashyam and Zelena...