This invention relates to a PdP / C catalyst of a high performance direct formic acid fuel battery including: loading Pd particles onto a carbon carrier, in which, the Pd particle is 1-80% that of the carbon carrier mass and the diameter is 3.0nm and contains a non-metal element P, the atomic ration of Pd and P is 8-12:1. The preparation method includes: adding a complexing agent, a stabilizing agent, PdCl2 and active carbon carrier to be oscillated with supersonic to get a component to be added by excessive reducer slowly, and the PdCl2 reacts with the reducer fully and P is introduced so that the recovered PdP particles are adsorbed on the carbon carrier to get component B, in which, introduction of P applies the following one or many reducers: H3PO2, KH2PO2, NaH2PO2 and Ca(H2PO2)2, the mol ratio of Pd and the reducer is 1:4-30, washing component B to be dried under vacuum or inert gas.