The detailed structure of Ag clusters formed in H zeolites during H2 reduction as well as under NO + C3H8 + O2 + H2 reaction condition is examined with H2-TPR, XRD, UV–vis, and Ag K-edge XAFS. H2-TPR results suggest a quantitative conversion of the exchanged Ag+ ion to Ag2pp+ cluster in Ag-MFI during H2 reduction in a temperature range from 373 to 573 K. Combined with the UV–vis spectrum of the cluster, exhibiting bands at 255 and 305 nm, and Ag K-edge EXAFS result, the structure of the cluster is identified as Ag42+. UV–vis and Ag K-edge XANES/EXAFS results reveal that, during NO + C3H8 + O2 + H2 reaction at 573 K, part of the Ag+ ions are converted to Agnδ+ clusters, whose average structure can be close to Ag42+. The amount of the clusters increases with the Ag/Al ratio of Ag zeolites. The NO reduction rate of Ag-MFI for the NO + C3H8 + O2 reaction is significantly improved by an addition of 0.5% H2, and the rate increases with Ag/Al ratio of Ag-MFI. This cluster does not form on Ag-MOR under the same conditions, and the NO reduction rate does not increase by H2 addition. The structure–activity relationship shows that the Agnδ+, probably the Ag42+ cluster, in Ag-MFI catalysts is responsible for the selective reduction of NO by C3H8.