Direct methanol alkaline fuel cell (DMAFC) using anion exchange membrane (AEM) was operated in passive condition. Cell with AEM exhibits a higher open circuit voltage (OCV) and superior cell performance than those in cell using Nafion. From the concentration dependences of methanol, KOH in fuel and ionomer in anode catalyst layer, it is found that the key factors are to improve the ionic conductivity at the anode and to form a favorable ion conductive path in catalyst layer in order to enhance the cell performance. In addition, by using home-made Pd-Sn/C catalyst as a cathode catalyst on DMAFC, the membrane electrode assembly (MEA) using Pd-Sn/C catalyst as cathode exhibits the higher performance than the usual commercially available Pt/C catalyst in high methanol concentration. Therefore, the Pd-Sn/C catalyst with high tolerance for methanol is expected as the promising oxygen reduction reaction (ORR) catalyst in DMAFC. (C) 2009 Elsevier B.V. All rights reserved.