Mixtures of nanosized platinum and palladium particles have been prepared by reduction of salt-containing microemulsion droplets using hydrazine as the reducing agent. To avoid possible negative effects of the presence of sulfur compounds during the preparation the microemulsion was made using the sulfur-free nonionic polyoxyethylene 4 lauryl ether surfactant. Transmission electron microscopy showed that the as-prepared mixtures contained crystalline platinum particles of fairly homogeneous size (20 to 40 nm) with adsorbed amorphous palladium particles 2 to 5 nm in size. Catalyst samples were prepared by depositing the nanoparticles on a gamma-Al2O3 support followed by heating in air at 600 degreesC. Alloyed particles of platinum and palladium with sizes ranging from 5 to 80 run were obtained during the heating. The majority of the particles had the fcc structure and their compositional range was dependent upon the Pt:Pd molar ratio of the microemulsion. A catalyst prepared from a microemulsion with a 20:80 Pt:Pd molar ratio showed the highest catalytic activity for CO oxidation, while pure platinum and palladium catalysts showed higher sulfur resistance. These results differ from the performance of conventional wet-impregnated catalysts, where a 50:50 Pt:Pd molar ratio resulted in the highest catalytic activity as well as the highest sulfur resistance. (C) 2003 Elsevier Inc. All rights reserved.