Direct synthesis of methanol from CH4 and O-2 has been experimentally studied using pulsed discharge plasma in a concentric-cylinder-type reactor. The methanol production was enhanced by dilution of source gas with inert gas, such as Ar and He. The methanol production became about 2.5 times larger at the dilution ratio of 2.5, and gradually decreased with increase of the dilution ratio and decrease of O-2 partial pressure. C2H6 was formed as one of the by-products, and its concentration increased with the increase of the dilution ratio. This tendency was the same for Ar and He. When the partial pressure of O-2 was kept constant, on the other hand, the methanol production increased and saturated with the increasing of the dilution, but concentration of C2H6 stayed about the same level. Reaction selectivity of the methanol synthesis depended on the dilution ratio of the inert gas.