Temperature programmed techniques (TPR, TPD) and X-ray diffraction (XRD) have been used to study ion migration and location as well as reducibility of platinum and cobalt ions encapsulated in Pt/NaY, Co/NaY and Pt-Co/NaY zeolites prepared by ion exchange. The temperature required to reduce Co2+ in NaY was significantly lowered by the presence of Pt and dependent upon the relative locations of Pt and Co ions in zeolite cages. The exact location was controlled by the calcination condition and the metal contents. For bimetallic catalyst with low Pt content (0.5 wt% Pt and 0.9 wt% Co), the TPR results indicated that reduction of Co2+ ions in the vicinity of Pt shifted toward lower temperature, while that of Co2+ staying alone was not affected. With high Pt loading (4.5 wt% Pt, 0.7 and 2.6 wt% Co), however, most of the Co2+ ions were reduced by means of Pt at temperature below 723 K after calcination at 573 K. The temperature for Pt reduction in bimetallic catalysts was somewhat higher than Pt/NaY and increased with Co atomic fraction, indicating that mixed oxide, PtCoxOy, might be formed during calcination. After reduction in hydrogen at 723 K, highly dispersed metal particles were formed. These fine particles were most probably confined inside zeolite cages as indicated by the absence of XRD peak for all samples after calcination and reduction. Surface composition of the bimetallic particles may be different for catalysts with similar Pt content but different Co loading. Accordingly, H/Pt ratios of 1.0 and 0.72 for catalysts with low and high Co content, respectively, were shown by hydrogen chemisorption. It was further supported by the increase in TPD peak intensity with Co loading in the high temperature range, which was related to the reoxidation of Co in bimetallic particles by surface hydroxyl groups. Preliminary results on CO hydrogenation demonstrated that activity and methanol selectivity were higher on Pt-Co bimetallic catalysts than either over monometallic Pt or Co catalyst, which was consistent with the Pt enhanced Co reduction and formation of Pt-Co bimetallic particles.