Ni@Pd/gamma-Al2O3 core shell structure catalyst was prepared via surface displacement reaction method. This novel route included reduction of Ni core by NaBH4 on the surface of gamma-Al2O3 and then substitution of Ni species by Pd, which was the resultant of H2PdCl4 precursor reduction. The synthesized catalysts were characterized through various methods such as XRD, EDX, HRTEM, BET, TPR and XPS. The characterization results confirmed that a homogeneous dispersion of core shell Ni@Pd nanoparticles over gamma-Al2O3 was established. The core shell structure Ni@Pd/gamma-Al2O3 catalyst compared to Ni/gamma-Al2O3 reveals an outstanding catalytic activity to higher butane conversion, CO selectivity and H-2 yield in partial oxidation which was associated to the special core shell structure. Ni@Pd/gamma-Al2O3 catalyst with core shell structure showed an appropriate ability in syngas production with an H-2/CO ratio of about 2 compared to other catalysts. (C) 2017 Hydrogen Energy Publications LLC. Published by Elsevier Ltd. All rights reserved.