In this work, we have found that the pair palladium acetate/hydrogen peroxide promoted a rare oxidative cyclization of beta-citronellol, resulting in the selective formation of a novel monoterpene derivative (i.e., (Z)-4,8,8-trimethyl-3,4,5,8-tetrahydro-2H-oxocine). The activity of different palladium-catalysts was assessed. Palladium acetate was the most active and selective catalyst, providing the oxocine derivative with high selectivity and conversion (ca. 79 and 83%, respectively) after 4 h reaction. The high atom efficiency, the use of green oxidant and the short reaction time comprise the main aspects of this process.