Highly dispersed Pt-Pd nanoparticles are synthesised within the channels of a mesoporous V-SBA-15 support followed by thorough catalyst characterisation (BET surface area and CO chemisorptions techniques) and testing in the selective hydrogenation of toluene to methylcyclohexane. The hydrogenation reaction is investigated under varied conditions of temperature, pressure, hydrogen to feed ratio and WHSV, respectively. Furthermore, detailed kinetics of hydrogenation is investigated. Typically, 100% conversion of toluene into methylcyclohexane is achieved at 498 K and 20 bar pressure and no other products like, 1,2- and 1,3-dimethyl cyclopentane and ethylcyclopentane were also observed due to isomerisation and cracking reactions. The activation energy of the reaction was found to be 51.22 kJ/mol. Thus, the obtained results are discussed with respect to the role of vanadium in hydrogenation reaction over SBA-15 framework.