Wet peroxide oxidation (WPO) of phenol is an effective means for the production of diphenols, which are of great industrial importance. An added advantage of this method is the removal of phenol from wastewater effluents. Hydroxylation of phenol occurs efficiently over mixed iron aluminium pillared montmorillonites. An initial induction period is noticed in all cases. A thorough study on the reaction variables suggests free radical mechanism for the reaction. (c) 2005 Elsevier B.V. All rights reserved.