A new process of coating of active exhaust catalyst over γ-Al2O3 coated cordierite honeycomb is reported here. The process consists of (a) growing γ-Al2O3 on cordierite by solution combustion of Al(NO3)3 and oxylyldihydrazide (ODH) at 600 °C and active catalyst phase Ce0.98Pd0.02O2-δ on γ-Al2O3 coated cordierite again by combustion of ceric ammonium nitrate and ODH with 1.2 × 10−3 M PdCl2 solution at 500 °C. Weight of active catalyst can be varied from 0.02 to 2 wt% which is sufficient but can be loaded even up to 12 wt% by repeating dip dry combustion. Adhesion of catalyst to cordierite surface is via oxide growth which is very strong. About 100% conversion of CO is achieved below 80 °C at a space velocity of 880 h−1. At much higher space velocity of 21,000 h−1, 100% conversion is obtained below 245 °C. Activation energy for CO oxidation is 8.4 kcal/mol. At a space velocity of 880 h−1 100% NO conversion is attained below 185 °C and 100% conversion of ‘HC’ C2H2 below 220 °C. At same space velocity 3-way catalytic performance over Ce0.98Pd0.02O2-δ coated monolith shows 100% conversion of all the pollutants below 220 °C with 15% of excess oxygen. In this method, handling of nano material – powder is avoided.