The oxidation of benzyl alcohol, with molecular oxygen at atmospheric pressure in an aqueous medium, is investigated using Au-Pd/MgO bimetallic catalysts to examine the effect of catalyst parameters (viz. preparation method. Au/Pd molar ratio, and calcinations temperature) and reaction conditions (viz. reaction temperature and oxygen flow rate) on conversion and selectivity. The bimetallic catalysts were prepared via two novel reduction methods with bio-reducing agents and were characterized by transmission electron microscopy, X-ray diffraction, diffuse reflectance UV-vis spectroscopy, and thermogravimetric analysis to understand synergistic interactions between Au and Pd. Under optimal conditions, the Au-Pd bimetallic catalysts, with a 1:1 molar ratio and 9.7 +/- 1.3 nm particle size, exhibited remarkably enhanced catalytic activity (>52%) and selectivity (similar to 100%) compared with their monometallic counterparts. Moreover, the activity of the catalysts was maintained after six recycles without agglomeration. (C) 2012 Elsevier B.V. All rights reserved.