Disproportionation of benzyl alcohol has been identified as the source of toluene formation in the solvent free oxidation of benzyl alcohol using supported gold palladium catalysts. There is a slight increase in the disproportionation reaction, and hence the toluene selectivity, when this reaction is performed in a continuous mode using a micro-packed bed reactor when compared to the same reaction performed in a conventional glass stirred batch reactor. Oxidation and disproportionation reactions respond slightly differently to the changes in reaction parameters, like oxygen concentration and pressure, when a micro packed bed reactor was used instead of a conventional glass stirred reactor. When MgO supported gold-palladium catalysts were used for this reaction, the toluene selectivity reduced substantially at the cost of conversion. (C) 2012 Elsevier B. V. All rights reserved.