Pd/HZSM-5 catalyst prepared via glow discharge plasma reduction followed by calcination thermally showed enhanced stability for methane combustion. In order to investigate the plasma catalyst preparation mechanism, oxygen glow discharge, initiated at room temperature, has been employed for reduction of Pd/HZSM-5 catalyst. The catalyst characterization using XRD and XPS analyses demonstrates that oxygen glow discharge plasma is also able to reduce Pd/HZSM-5 catalyst. This suggests that the electronic effect plays an important role in the treatment of catalyst using glow discharge. This also confirms that the thermal effect of the glow discharge reduction can be ignored. A highly durable catalyst for methane combustion has been obtained from calcination of the glow discharge reduced sample.