Ag-CuCl catalysts were found to be active and selective for the epoxidation of propylene using air as the oxidant. Ag catalyst gives a propylene conversion of 31.6%, with a propylene oxide (PO) selectivity of 0.42% at a reaction temperature of 350 degreesC after 220 min of reaction. Addition of CuCl significantly improves the selectivity to PO, and suppresses the conversion of propylene. The Ag-CuCl (1/0.6) catalyst gives propylene conversion of about 3% and a PO selectivity of about 30% at a reaction temperature of 350 degreesC after 500 min of reaction. The activity of the Ag-CuCl catalyst increases with the reaction time and the selectivity to PO is very stable for this catalyst. It is found that AgCl and CuO phases formed during the catalyst preparation are beneficial to the epoxidation of propylene.