Copper-based catalysts have been extensively investigated in electrochemical carbon dioxide (CO2) reduction to promote carbon products generated by requiring multiple electron transfer. However, hydrophilic electrodes are unfavourable for CO2 mass transfer and preferentially hydrogen (H2) evolution in electrochemical CO2 reduction. In this paper, a hydrophilic cupric oxide (CuO) electrode with a grassy morphology was prepared. CuO-derived Cu was confirmed as the active site for electrochemical CO2 reduction through wettability modulation. To enhance the intrinsic catalytic activity, a metal-oxide heterogeneous interface was created by engineering modulation at the interface, involving the loading of palladium (Pd) on CuO (CuO/Pd). Both the electrochemically active area and the electron transfer rate were enhanced by Pd loading, and significantly the reduced work function further facilitated the electron transfer between the electrode surface and the electrolyte. Consequently, the CuO/Pd electrode exhibited excellent excellent performance in electrochemical CO2 reduction, achieving a 54 % Faraday efficiency at −0.65 V for methanol (CH3OH). The metal-oxide interfacial effect potentially improves the intrinsic catalytic activity of hydrophilic CuO electrodes in electrochemical CO2 reduction, providing a conducive pathway for optimizing hydrophilic oxide electrodes in this process.