Abstract: Two different Pd/In2O3 samples including a thin film model catalyst with well-defined Pd particles grown on NaCl(0 0 1) supports and a powder catalyst prepared by an impregnation technique are examined by electron microscopy, X-ray diffraction and catalytic measurements in methanol steam reforming in order to correlate the formation of different oxide-supported bimetallic PdIn phases with catalytic activity and selectivity. A PdIn shell around the Pd particles is observed on the thin film catalyst after embedding the Pd particles in In2O3 at 300 K, likely because alloying to PdIn and oxidation to In2O3 are competing processes. Increased PdIn bimetallic formation is observed up to 573 K reduction temperature until at 623 K the film stability limit in hydrogen is reached. Oxidative treatments at 573 K lead to decomposition of PdIn and to the formation of an In2O3 shell covering the Pd particles, which irreversibly changes the activity and selectivity pattern to clean In2O3. PdIn and Pd2In3 phases are obtained on the powder catalyst after reduction at 573 K and 673 K, respectively. Only CO2-selective methanol steam reforming is observed in the reduction temperature range between 473 K and 573 K. After reduction at 673 K encapsulation of the bimetallic particles by crystalline In2O3 suppresses CO2 formation and only activity and selectivity of clean In2O3 are measured.