We performed density functional theory (DFT) calculations to investigate the synergized O2 activation and CO oxidation by Ag8 cluster on TiO2(101) support. The excellent catalytic activity of the interfacial Ag atoms in O2 dissociation is ascribed to the positive polarized charges, upshift of Ag d-band center, and assistance of surface Ti5c atoms. CO oxidation then takes place via a two-step mechanism coupled with O2 dissociation: (i) CO + O2 → CO2 + O and (ii) CO + O → CO2. The synergistic effect of CO and O2 activations reduces the oxidation energy barrier (Ea) of reaction (i), especially for the up-layered Ag atoms not in contact with support. It is found that the coadsorbed CO and O2 on the up-layered Ag atoms form a metal-stable four-center O-O-CO structure motif substantially promoting CO oxidation. On the oxygen defective Ag8/TiO2(101) surface, because of the decreased positive charges and the down-shift of d-band centers in Ag, the metal cluster exhibits low O2 adsorption and activation abilities. Although the dissociation of O2 is facilitated by the TiO2(101) defect sites, the dissociated O atoms would cover the defects so strongly that further CO oxidation would be prohibited unless much extra energy is introduced to recreate oxygen defects.