Pd and TiO2 supported on functionalized multiwall carbon nanotubes (f-MWCNTs) catalysts were investigated in formic acid electrooxidation reaction in direct formic acid fuel cell. TiO2 (5–60 wt.% loading) on f-MWCNTs was deposited using microwave-assisted hydrothermal method. 20 wt.% of Pd was deposited on TiO2/f-MWCNTs by reduction of palladium (II) chloride salt with sodium borohydride. Catalysts’ structure and composition were characterized by XRD, STEM, HR-TEM, TGA, XPS/XAES (Pd, Ti, O spectra features, density of valence states, Auger parameters). Average crystallite size of Pd and TiO2 from XRD (3–4 nm) agrees with those by HR-TEM (3–5 nm). Low TiO2 coverages (below 32wt.%) show smaller crystallites due to increased surface hydrophilicity, higher amount of TiO2 oxygen vacancies with attached Pd nanoparticles, increased density of valence states of strong Pd–TiO2 interface. In contrary, the higher coverages indicate lower amount of Pd–O–Ti, Ti–O–C, Pd–O–C interfaces, with electron charge transfer from TiO2 to f-MWCNTs, and to Pd. Catalysts activity (40–106 mWmgPd−1) and stability (5–240 h) are enhanced at low TiO2 coverages (4–8 wt.%) due to a strong Pd-TiO2 interface on oxygen vacancies, improved electron transport and a high active surface area. Oscillatory self-cleaning mechanism of Pd is due to oxidation by -OH groups (TiO2, f-MWCNTs), and hydrogen and CO spillover.