Destruction of hydrogen peroxide by its decomposition and hydrogenation over Pd catalysts supported on activated carbon cloth has been investigated. The catalysts were prepared by the impregnation method using acidic solution of palladium dichloride (PdCl2) as a metal precursor. The reactions were performed batchwise in a Parr stainless steel autoclave. Tests were run at room temperature using either methanol or water as a reaction medium. The effects of oxidation pre-treatment of the support with different acids (nitric and acetic acid), the heat treatment of the catalysts in different atmospheres (H2 and air), and Pd content on the final properties and H2O2 destruction activity of the catalysts were investigated. The results indicated that oxygen-containing surface functional groups have an important role in determining the physicochemical properties and H2O2 destruction activity of the catalysts. In fact, the presence of these groups stabilizes H2O2 in the solution and reduces its decomposition and hydrogenation. Furthermore, the presence of the oxidized state of Pd (PdO) in the catalyst makes it less active in H2O2 decomposition when compared to the corresponding zero valences (Pd0) catalyst. Using water instead of methanol dramatically increased the H2O2 decomposition.