Carbon supported PtNi nanoparticles were prepared by hydrazine reduction of Pt and Ni precursor salts under different conditions, namely by conventional heating (PtNi-1), by prolonged reaction at room temperature (PtNi-2) and by microwave assisted reduction (PtNi-3). The nanocomposites were characterized by XRD, EDX, XPS and TEM and used as electrocatalysts in direct methanol fuel cell (DMFC) reactions. Investigations into the mechanism of PtNi nanoparticle formation revealed that platinum nanoparticle seeding was essential for the formation of the bimetallic nanoparticles. The average particle size of PtNi prepared by microwave irradiation was the lowest, in the range of 2.9 – 5.8 nm. The relative rates of electrooxidation of methanol at room temperature as measured by cyclic voltammetry showed an inverse relationship between catalytic activity and particle size in the following order PtNi-1 < PtNi-2 < PtNi-3.Singapore-MIT Alliance (SMA)