CeO2 oxygen carrier was prepared by precipitation method and tested by two-step steam reforming of methane (SRM). Two-step SRM for hydrogen and syngas generation is investigated in a fixed-bed reactor. Methane is directly converted to syngas at a H2/CO ratio close to 2: 1 at a high temperature (above 750 ℃) by the lattice oxygen of CeO2; methane cracking is found when the reduction degree of CeO2 was above 5.0% at 850 ℃ in methane isothermal reaction. CeO2-δ obtained from methane isothermal reaction can split water to generate CO-free hydrogen and renew its lattice oxygen at 700 ℃; simultaneously, deposited carbon is selectively oxidized to CO2 by steam following the reaction (C+2H2O→CO2+2H2). Slight deactivation in terms of amounts of desired products (syngas and hydrogen) is observed in ten repetitive two-step SRM process due to the carbon deposition on CeO2 surface as well as sintering of CeO2.