EDTA as precursor of carbon was introduced into Pd(NO3)2 catalysts supported on γ-Al2O3 or 5%MgO/γ-Al2O3. Two kinds of samples,denoted as Pd(NO3)2/[support+EDTA] and [Pd(NO3)2/support]+EDTA, were prepared by changing sequence of impregnating EDTA to the supports. After only being dried they were tested for methane combustion. XPS analyses to the samples at different stages of testing reaction were performed. It was found that the Pd(NO3)2 catalysts became more inactive due to the introduction of EDTA. EDTA in the catalysts was naturally in situ oxidized,partially became into CO2 and escaped, partially coked and deposited on palladium and support with temperature increasing in oxygen-rich atmosphere.Formation of Pd-C solid solution was also confirmed during the reaction. It can be suggested that foreign carbon, in spite of its any existing forms and position in catalysts, inhibits methane combustion largely. The role of carbon on morphological change of palladium during methane combustion was also discussed.