Homogeneous collections of Pd−Ni core−shell nanoparticles have been prepared by decomposition of metal−organic compounds and studied by several electron microscopy techniques: transmission electron microscopy (TEM), energy-dispersive X-ray spectroscopy (EDS), high-resolution transmission electron microscopy (HRTEM), energy-filtered microscopy (EFTEM), and by X-ray photoelectron spectroscopy (XPS). The physical and chemical properties of the Pd shell are supposed to depend on its electronic properties, which are influenced by the presence of the Ni core and by the deformation in the Pd lattice. Here, the interfacial structure of Pd/Ni and the lattice deformations in the core and the shell are studied in detail. The catalytic properties of the pure metal and the bimetallic particles, toward CO oxidation, have been investigated.