Nd doping decreases the activity of Ag/CeO2 but enhances its thermal stability. Nd brings forth surface oxygen vacancies (VO-s) but reduces the bulk ones (VO-b). Both inadequate VO-b and excessive VO-s hinder the ceria bulk oxygen availability. Excessive VO-s induces the formation of O2− instead of highly active Ox−. VO-s and mesopores generated by Nd doping inhibit Ag sintering effectively.