Nanosized metal (Pt or Pd)-decorated TiO₂ nanofibers (NFs) were synthesized by a wet impregnation method. CdSe quantum dots (QDs) were then anchored onto the metal-decorated TiO₂ NFs. The photocatalytic performance of these catalysts was tested for activation and reduction of CO₂ under UV-B light. Gas chromatographic analysis indicated the formation of methanol, formic acid, and methyl formate as the primary products. In the absence of CdSe QDs, Pd-decorated TiO₂ NFs were found to exhibit enhanced performance compared to Pt-decorated TiO₂ NFs for methanol production. However, in the presence of CdSe, Pt-decorated TiO₂ NFs exhibited higher selectivity for methanol, typically producing ~90 ppmg^-1·h^-1 methanol. The CO₂ photoreduction mechanism is proposed to take place via a hydrogenation pathway from first principles calculations, which complement the experimental observations.