Alumina, as well as zeolites HY and NaY modified with palladium (0.5–2.5 wt%) were tested in the process of methanol incineration to found an effective catalyst for the elimination of volatile organic compound (VOCs). Parent materials as well as their modifications with palladium were investigated with regards to their structural, textural and acidic/redox properties. The IR spectroscopy, X-ray diffraction, TEM, and low temperature N2 sorption methods were employed for these purposes. This research shows that the Pd deposited on highly acidic steamed zeolite HY is considered as promising catalyst for the elimination of volatile organic compounds (VOCs). Both Pd0 and Pd2+ species were found to be responsible for the oxidation process. Superior catalytic activity of 1.5%Pd/HY resulted from a synergistic effect of a high acidity of the zeolitic support and Pd species dispersion. The validity of Mars-van Krevelen pathway can be proposed as suitable for HCHO, CH3OH and CH4 oxidation.