This review paper presents the significant advances which were made in the last decade in the understanding of the transformation over acid and bifunctional zeolite catalysts of the cheap and readily available C-2-C-4 alkanes into more valuable products: mechanism of activation, reaction scheme, nature of the active sites. Both the transformations of pure alkanes: n-butane isomerization, C2-C4 alkane aromatization and of alkanes in mixture with alkenes: isobutane-butene alkylation or with aromatic hydrocarbons: benzene alkylation with ethane or propane are considered. (c) 2006 Elsevier B.V. All rights reserved.