Nanoclusters of Pt, Pt–Rh, Pt–SnO2 and Pt–Rh–SnO2 were successfully synthesized by polyol method and deposited on high-area carbon. HRTEM and XRD analysis revealed two phases in the ternary Pt–Rh–SnO2/C catalyst: solid solution of Rh in Pt and SnO2. The activity of Pt–Rh–SnO2/C for ethanol oxidation was found to be much higher than Pt/C and Pt–Rh/C and also superior to Pt–SnO2/C. Quasi steady-state measurements at various temperatures (30–60 °C), ethanol concentrations (0.01–1 M) and H2SO4 concentrations (0.02–0.5 M) showed that Pt–Rh–SnO2/C is about 20 times more active than Pt/C in the potential range of interest for the fuel cell application. Keywords: Pt–Rh–SnO2 nanocatalyst, Ethanol electrooxidation, Direct ethanol fuel cell, Polyol synthesis