Methanol steam reforming is an option for dynamic hydrogen generation in automotive fuel cell systems. Microstructured reactors with small channels (100 mum x 100 mum) are being studied. A washcoating procedure applying dispersed ZnO nanoparticles to the microchannel walls was adapted to the PdZn catalyst system. The catalyst layer showed no significant differences during X-ray diffraction and temperature-programmed oxidation and reduction experiments for examination of oxidation state and alloy formation compared with other PdZn systems reported in the literature. Chemisorption with different adsorbates and X-ray backscattering were used for gathering detailed information on PdZn dispersion, diameter and shape with respect to the preparation parameters. Catalytic experiments yielded a relationship between the catalyst properties and the catalytic activity, degradation and secondary reactions. (C) 2004 Elsevier B.V. All rights reserved.