Ferric trisacetylacetonate has been deposited within the zeolite MCM-41 and the product characterized by XRD and IR. In water at pH 7 it catalyzes the oxidation of phenol by H2O2, giving 58% conversion in 1 h at 50 degrees C : products are catechol (66%), hydroquinone (27%) and benzoquinone (7%). Other oxidants and solvents are much less effective. UV-VIS spectra suggest a radical substitution mechanism, and a pollution-free process for phenol hydroxylation is now possible.