AbstractPdZn intermetallic compounds (IMCs) have been extensively reported for acetylene semi‐hydrogenation due to unique geometric and electronic structure of isolated Pd sites. However, to achieve high ethylene selectivity at high conversion remains challenging. Here we show the promotional role of ceria in modifying the geometric and electronic structure of PdZn IMCs towards enhanced catalytic performance for acetylene semi‐hydrogenation. The Ce (0.1 wt%) promoted Pd−Zn‐Al catalyst shows by far the best catalytic performance among other Pd based catalysts in literature, maintaining high selectivity (>95 %) and excellent stability (~130 h) at high acetylene conversion (~90 %). Using in situ spectroscopic techniques, the geometric and electronic effects of CeOx promotor were clearly elucidated. At low Ce content, the presence of highly dispersed Ce3+ species in the periphery of PdZn alloys enhanced electronic metal‐oxide interaction, resulting in electron‐rich Pd sites that promote hydrogen dissociation and ethylene desorption, and account for the outstanding catalytic performance. At high Ce content, the formation of bulk‐phase CeO2 suppressed the PdHx formation during PdZn alloying and led to phase separation yielding highly dispersed Pd ensembles, consequently lowering ethylene selectivity. Our results provide a new route for the design of PdZn catalyst by applying rare earth promoters towards high‐performance acetylene semi‐hydrogenation.