Two types of bimetallic Pd-Ru catalysts with a 2:1 Ru:Pd molar ratio were prepared using a poly-(vinylpyrrolidone) stabilizer: one alloy structure with mixed-surface atoms and one core–shell structure with a Pd core and Ru shell, which were confirmed by a surface-probe reaction at mild conditions. In indan hydrogenolysis at 350°C, inversion of the core–shell structure began with Pd atoms appearing on the surface of the particles. Both catalysts displayed distinctively different catalytic behavior and indicated the importance of structure control for this particular application within a studied time frame. For methane combustion over the 200–550°C temperature range, both structures demonstrated identical activity, which was due to their structural evolution to one nanoparticle type with Pd-enriched shells, as evidenced by extended X-ray absorption fine structure.