Three-way catalysts, a component of automobile converters, can control auto exhaust emissions by its capacity of converting CO, un-burnt hydrocarbon and oxides of nitrogen (NO x ) into less harmful CO 2 , H 2 O and N 2 simultaneously. This process is efficient only when the A/F ratio is at 14.7. To widen the ratio for better chemical control, oxygen storage catalysts (OSC) based on CeO 2, capable of three-way action, are employed in converters along with conventional catalysts. In this article, the enhanced activity of noble metal ion incorporated/dispersed CeO 2 catalysts towards three-way action over conventional metal particles dispersed (in a matrix) catalysts is illustrated. The better performance of the metal ion dispersed catalysts is attributed to better dispersion of active metal ion sites over the reducible matrix like CeO 2, leading to many-fold increase in the number of active sites.