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The best activity of bimetallic AuPd nanoparticles for alcohol oxidation reaction is usually achieved by adjusting the Au/Pd molar ratio. Herein, alloy AuPd nanoparticles of ∼2.5–3.5 nm, ranging from Au‐rich to Pd‐rich compositions, were synthesized through a sol‐immobilization method. A calcination step under air conditions caused an increase in size up to 5.5 nm, but also driven the segregation of Pd to the surface, which generated an Au rich core with Pd on the shell. At high Pd content, the shell structure is formed by PdO. The catalytic activity of Pd‐rich samples (1 : 1, 1 : 2 and 1 : 4 Au : Pd) for benzyl alcohol oxidation increased ∼4‐fold after calcination. Upon reduction with H2, surface PdO motifs are reduced to Pd that did not dissolve back into the AuPd alloy core, maintaining the metallic Pd shell. The catalytic activity decreased. Therefore, restructuring alloyed AuPd nanoparticles into core‐shell like structures with PdO in the shell is beneficial to the catalytic activity, but reduction of PdO layer was detrimental. These results provide new insights on the optimization of AuPd catalysts, considering not only the Au/Pd molar ratio, but also the importance of PdO, which was not anticipated in the previous literature. [ABSTRACT FROM AUTHOR]