The effect of bulk BaO promoter on CO oxidation activity of palladium oxide phase was studied by density functional calculations. A series of BaO(100) supported Pd(x)O(y) thin layer models were constructed, and energy profiles for CO oxidation on the films were calculated and compared with corresponding profiles for the most stable PdO bulk surfaces PdO(100) and PdO(101). The most stable of the thin films typically exhibit the same PdO(100) and PdO(101) surface planes; the PdO(100) dominates already with double layer thickness. The supporting promoter improves the CO oxidation activity of the Pd(x)O(y) phase via a direct electronic effect and introduced structural strain and corrugation. Changes in CO adsorption strength are reflected in oxidation energy barriers, and the promoting effect of even 0.3 eV can be seen locally. Easier oxygen vacancy formation may partially facilitate the reaction.