A novel Ce0.8Zr0.2O2 washcoat has been prepared by an impregnation method and used as a host for the active Pd component to prepare a Pd/Ce0.8Zr0.2O2 /substrate monolithic catalyst for toluene catalytic combustion. Thermogravimetry and differential scanning calorimetry, scanning electron microscopy, X-ray powder diffraction, N-2 adsorption, Raman spectroscopy, and CO temperature-programmed reduction have been used to characterize the catalyst. The washcoat is uniform and shows strong adhesion to the substrate according to an ultrasonic test. A toluene conversion of 97% is obtained at a temperature as low as 210 degrees C over the Pd/Ce0.8Zr0.2O2/substrate monolithic catalyst calcined at 400 degrees C. The formation Of CeO2-ZrO2 solid solution and the presence of the stable PdO phase at high temperatures are primarily responsible for the good thermal stability of the monolithic catalyst.