The direct hydroxylation of toluene with nitrous oxide to cresol has been studied on two different H[Al]ZSM-5 zeolites with an Si/Al ratio of around 25 and different crystal sizes (30-70 nm and 1-3 mum). The samples were activated by calcination and characterized by X-ray diffraction, temperature programmed desorption of ammonia, adsorption of nitrogen and transmission electron microscopy. For the two different crystal sizes, different macroscopic cresol yields and time on stream behaviours are observed. The sample having larger crystals shows a decrease in toluene conversion with increasing reaction temperature. For the smaller crystals an increase in toluene conversion, selectivity to cresol and amount of para-cresol in the cresol fraction with increasing reaction temperature is observed. The para-cresol selectivity is lower on the sample with the longer diffusion path. The findings are explained by product diffusion limitation caused by high reactivity and strong adsorption of the polar product cresol on H[Al]ZSM-5, resulting in a rapid deactivation of the larger crystals.