The viability of catalyzed CO2 conversion routes strongly depends on improving the catalytic performance and understanding of the process. Herein, we investigate the effect of Ca loading on PdZn/CeO2 catalysts prepared using the sol–gel chelatization method for CO2 hydrogenation to methanol. A remarkable improvement in catalyst performance was revealed with the optimum amount of Ca (0.5 wt%) in synergetic cooperation with the PdZn alloy (main active phase for the CO2 hydrogenation to methanol reaction), compared to the Ca-free counterpart. The following key performance indicators are attained at 230 °C, 20 bar, and 2400 h−1 GHSV for the optimized catalyst: 16 % CO2 conversion, > 93 % methanol selectivity, and ∼ 124 g/kgcat/h methanol space–time yield. The overall catalytic performance observed is attributed to the optimum Ce3+/Ce4+ ratio, Ca2+promotion, surface area, pore volume, and basic sites, as revealed by various characterization techniques. Results shown here indicate that the presence of Ca in the vicinity of the PdZn active enhances basicity, creates oxygen vacancies, and phase may have improved the spill-over ability of H2, consequently favoring CO2activation and methanol formation.