Ce-Zr-Tb oxide solid solution (CZT) was prepared using co-precipitation technique and characterized by means of X-ray diffraction( XRD), FT-Raman spectra, scanning electronic microscopy(SEM). Meanwhile, The palladium-only three-way catalyst(TWC) containing CZT was prepared by slurry coating and its catalytic activity was evaluated under the condition of simulated exhaust. The results show that CZT has cubic fluorite structure and the TWC containing CZT has higher catalytic activity including a wider operation window of air/fuel ratio and lower lighter-off temperature. CZT is suitable for the key material of a new generation of TWC.