The oxidative dehydrogenation of propane has been studied with nitrous oxide (or mixture of nitrous oxide and oxygen) as oxidant. Nitrous oxide is a more selective but less active oxidant as compared with molecular oxygen. Upon increasing the concentration of N2O in the reaction mixture of propane and oxygen results in a substantial increase of propane conversion, while the selectivity to propene remains constant. The synergistic effect of O-2 and N2O leads to a threefold higher yield of propene relative to than that of oxygen or nitrous oxide alone.