A highly active and stable catalyst for hydrogen-iodide decomposition reaction in sulfur-iodine (SI) cycle has been prepared in the form of Pd-CeO 2 nanocatalyst by sol-gel method with different calcination temperatures (300°C, 500°C, and 700°C). XRD and TEM confirmed a size around 6-8 nm for Pd-CeO 2 particles calcined at 300°C. Raman study revealed large number oxygen vacancies in Pd-CeO 2-300 when compared to Pd-CeO 2-500 and Pd-CeO 2-700. With increase in calcination temperature, the average particle size increased whereas the specific surface area and number of oxygen vacancies decreased. Hydrogen-iodide catalytic-decomposition was carried out in the temperature range of 400°C-550°C in a quartz-tube, vertical, fixed-bed reactor with 55 wt % aqueous hydrogen-iodide feed over Pd-CeO 2 catalyst using nitrogen as a carrier gas. Pd-CeO 2-300 showed hydrogen-iodide conversion of 23.3 %, which is close to the theoretical equilibrium conversion of 24 %, at 550°C. It also showed a reasonable stability with a time-on-stream of 5 h.