In this work, a novel glow discharge plasma treatment of Pd/HZSM-5 catalyst, followed by calcination thermally, has been conducted. Such prepared catalyst presents a higher catalytic activity and an enhanced stability over the catalyst prepared without plasma treatment. The methane conversion over the plasma treated catalyst is close to 100% at 450℃, but it is only ca. 50% at the same temperature over the catalyst without plasma treatment. The XPS, H2 chemisorption and XRD characterizations confirm an enhanced dispersion has been achieved with the plasma reduction (during treatment) followed by oxidation (during calcination). Upon FT-IR analyses, the plasma treatment, followed by calcination thermally, also leads to enhanced Brönsted and Lewis acidities. The amount of Brönsted acid sites of the plasma treated Pd/HZSM-5 catalyst is 1.13 times larger than that of the catalyst without plasma treatment, while the amount of Lewis acid sites of the plasma treated Pd/HZSM-5 catalyst is 1.21 times higher. The enhanced acidities are definitely helpful to increase the dispersion of PdO over the support and improve the interaction between PdO and HZSM-5 support, which leads to a remarkable improvement in the catalyst stability.