Cesium-exchanged heteropolyacid (Cs(x)H3.0-xPW12O40) was impregnated onto activated carbon aerogel (ACA) with a variation of cesium content (X = 2.0, 2.3, 2.5, 2.7, and 3.0) in order to provide acid sites to ACA. Palladium catalysts were then supported on Cs(x)H3.0-xPW12O40-impregnated activated carbon aerogel (Pd/Cs(x)H3.0-xPW12O40/ACA, X = 2.0-3.0) by an incipient wetness impregnation method for use in the decomposition of lignin model compound to aromatics. 4-Phenoxyphenol was used as a lignin model compound for representing 4-O-5 linkage of lignin. In the catalytic decomposition of 4-phenoxyphenol over Pd/Cs(X)H3.0-xPW12O40/ACA, cyclohexanol, benzene, and phenol were mainly produced. Conversion of 4-phenoxyphenol and total yield for main products (cyclohexanol, benzene, and phenol) were closely related to the acidity of Pd/Cs(x)H3.0-xPW12O40/ACA. Conversion of 4-phenoxyphenol and total yield for main products increased with increasing acidity of Pd/Cs(x)H3.0-xPW12O40/ACA. Among the catalysts tested, Pd/Cs2.5H0.5PW12O40/ACA catalyst with the largest acidity showed the highest conversion of 4-phenoxyphenol and total yield for main products. Therefore, it is concluded that acidity of catalysts would be an important factor determining the catalytic performance in the decomposition of 4-phenoxyphenol.