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In the present work we study the behavior of hexagonal YMn0.5Fe0.5−xPdxO3 as a host material for Pd2+, in terms of self-regenerating catalysts. Both XPS and ex situ XRD measurements are used to monitor the changes occurring in the system when exposed to reducing and to oxidizing atmospheres. Results suggest that YMn0.5Fe0.5−xPdxO3 reacts reversibly to these variations in the environmental red-ox conditions, extruding PdO nanoparticles when reduced and reincorporating Pd2+ upon reoxidation. In addition, the material shows a low light-off temperature (~80C) for CO oxidation to CO2 under CO lean conditions, comparable to that of Pd dispersed on Alumina. The heat resistance of the system’s structure and its effects on applications are also discussed.