The BaO-modified Pd/Al2O3 exhibits much better catalytic activity than Pd/Al2O3 for C3H8 oxidation both before and after the hydrothermal aging treatment. Further studies ascribe its good activity to the influence of BaO species on the physicochemical characteristics of the catalyst and the reaction routes. Firstly, the BaO species inhibits the phase transformation of alumina, resulting in higher surface area of the catalysts and hereby a better dispersion of Pd. Secondly, the basic nature and electron-withdrawing effect of barium oxide maintain palladium at high oxidation state, which leads to a higher PdO content on surface of the BaO-modified catalyst. Finally, the formation/decomposition of carbonate/bicarbonate species can be promoted by the addition of BaO, which provide extra reaction routes and are important for the deep oxidation of C3H8.