A spectroscopic and microscopic investigation was made of the dynamics of bimetallic nanoparticles (NPs) in Co− Ni/MgAl 2 O 4 catalysts used for the steam reforming of ethanol (SRE) reaction, considering the implications for catalytic performance, shedding light on the elusive effect of Co−Ni alloy in reforming reactions. X-ray absorption spectroscopy (XAS) analyses showed that contact with the reagent mixture led to major changes in the superficial structure of the Co−Ni nanoparticles, which were strongly dependent on temperature and the metal particle size. At room temperature, contact between the Co−Ni NPs and the reactants (ethanol and H 2 O) led to the formation of a Co−Ni oxide film over the Co−Ni metal core, with CoO/NiO = 1. For smaller Co−Ni NPs (about 5 nm), the oxide film showed a dynamic composition according to temperature, with Co migrating to the surface while being oxidized up to around 350 °C. A structure with a core of (Co,Ni) and a shell rich in CoO was formed, which could be reduced above 350 °C. The surface CoO was mainly reduced upon heating in the reaction stream, with migration into the NP cores. For larger Co−Ni NPs (about 10 nm), the oxide film remained stable up to 200 °C, being reduced by the ethanol stream at higher temperatures. At operating temperatures in the range of 350−400 °C, the surface structure of the Ni−Co alloy showed (Ni,Co)−O species, while these metal oxide species decreased with increases of the thermal treatment temperature and the nanoparticle size. At low temperatures, the Co−Ni nanoparticles were covered by CoO/NiO and were active for the oxidative dehydrogenation of ethanol. With the increase of temperature, surface CoO was reduced and incorporated in the Co−Ni nanoparticle core. These metal sites became active toward the reactant and catalyzed the dehydrogenation of ethanol, followed by C−C bond cleavage, resulting in the formation of CH 4 , CO, and H 2 . The presence of CoO at the surface of the smaller Co−Ni nanoparticles suppressed carbon accumulation, compared to larger Co−Ni or Ni nanoparticles that had highly reduced surfaces.