Multifunctional catalysts are highly attractive for green oxidation process integrating excellent conversion and selectivity with high separability and recyclability. In this regards, a facile method is developed to fabricate yolk-shell microspheres consisting of Fe3O4 cores, mesoporous CeO2 shells and loaded Pd nanoparticles. Microspheres with 2.6 % Pd loading exemplify excellent catalytic activity for solvent-free, selective oxidation of benzyl alcohol to benzaldehyde by molecular oxygen at 373 K and atmospheric pressure, resulting in 80.5 % conversion of benzyl alcohol with 94.8 % selectivity for benzaldehyde. The catalyst can be magnetically separated and recycled without significant loss of catalytic efficiency even after seven catalytic runs.