We report a colloidal synthesis of Au(0.80)Pd(0.20)-Fe(x)O(y) dumbbell nanocrystals (NCs) derived from Au(0.75)Pd(0.25) NCs by metal oxide overgrowth. We compared the catalytic activity of the two types of NCs in the CO oxidation reaction (CO + 1/2O(2) → CO(2)), after they had been dispersed on an alumina nanopowder support. In both cases, the surface active sites were identified by means of in situ diffuse reflectance infrared Fourier transform spectroscopy (DRIFTS). The enhanced catalytic performance of the dumbbell NCs (Au(0.80)Pd(0.20)-Fe(x)O(y)) catalyst over that of the initial Au(0.75)Pd(0.25) NCs could be correlated to the presence of the epitaxial connection between the Fe(x)O(y) and the Au(0.80)Pd(0.20) domains (as the main factor). Such connection should result in an electron flow from the metal oxide (Fe(x)O(y)) domain to the noble metal (Au(0.80)Pd(0.20)) domain and appears to influence favorably the nature and composition of the catalytically active surface sites of the dumbbells. Our experiments indicate indeed that, when the metal alloy domain is attached to the metal oxide domain (that is, in the dumbbell), surface Pd species are more active than in the case of the initial Au(0.75)Pd(0.25) NCs and also Au(δ-) sites are formed that were not present on the initial Au(0.75)Pd(0.25) NCs.