Nano-$Ce_{0.73}Ti_{0.25}Pd_{0.02}O_{2-δ}$ solid solution, prepared by solution combustion method, has been synthesized. The catalyst has been characterized by XRD, HRTEM and XPS. Synergistic interaction of Pd with Ti/Ce is very strong because of ionic substitution. The reducibility of $Ce_{0.73}Ti_{0.25}Pd_{0.02}O_{2-δ}$ is about 5 times higher compared to that of $Ce_{0.98}Pd_{0.02}O_{2-δ}$ below 140 °C. The easy removal of oxygen from the more reducible Ti containing support plays a major role in showing higher catalytic activity of this material for CO oxidation and $N_2O$ and NO reduction by CO. The catalyst shows 100% $N_2$ selectivity above 240 °C and high reaction rates compared to other catalysts reported in the literature. It has been shown that oxide ion vacancy creation in the support promotes the adsorption and dissociation of NO or $N_2O$ at a lower temperature. Kinetic models based on a bifunctional mechanism were used to determine the reaction rate coefficients.