Palladium-ytterbium (Pd-Yb) bimetallic catalysts with different Pd/Yb ratios supported on carbon black (20%Pd-x%Yb/C, x = 0, 1, 5, 10, and 15) were prepared by a sodium borohydride reduction method. The 20%Pd-5%Yb/C catalyst exhibited the best electrocatalytic activity towards methanol oxidation in alkaline media. The improved electrocatalytic activity and stability of 20%Pd-5%Yb/C can be explained by a bi-functional mechanism. In addition, the higher content of metallic palladium caused by the addition of ytterbium also contributes to the better catalytic activity of the 20%Pd+5%Yb/C catalyst. In view of the good electrocatalytic performance of 20%Pd+5%Yb/C, the 20%Pd+5%Yb catalyst supported on titanium suboxide (20%Pd+5%Yb/Ti4O7) was prepared. However, the Pd-Yb particles supported on Ti4O7 were seriously agglomerated. To improve the dispersion status of alloy particles, the Ti4O7 was functionalized with poly(diallyldimethylammonium chloride) (Ti4O7-PDDA). Electrochemical characterizations showed that no matter Ti4O7 or Ti4O7-PDDA as supports, Pd-Yb catalysts exhibited better catalytic activity than 20%Pd-5%Yb/C. The improvement mainly results from the further increase of metallic Pd due to the presence of Ti4O7.