The purification of crude terephthalic acid was performed by the hydrogenation of 4-carboxybenzaldehyde (4-CBA) over activated carbon (AC) supported Pd catalysts in industry. However, traditional Pd/AC catalysts usually suffer from low hydrogenation activity and poor thermal stability. Herein, nitrogen was incorporated into AC via a simple hydrothermal treatment of AC with urea as the nitrogen resource. The N doped AC contained pyridinic N, pyrrolic N, graphitic N and oxidized N. Wide characterizations revealed that N doping not only effectively improved the dispersion of Pd NPs but also increased the proportion of Pd0. In addition, N doping also enhanced the dissociative adsorption capacity of molecular hydrogen. More importantly, the resistance to sintering of Pd NPs was efficiently suppressed after N doping. As a result, N doped AC supported Pd showed both higher activity and better thermal stability than the N-free one.