Selective disproportionation of toluene to p-xylene was studied over modified MFI aluminosilicate. The relationship between extent of silica deposition and para selectivity was established. The effect of reaction parameters such as temperature and weight hourly space velocity (WHSV) on para selectivity was considered. Kinetics of reaction in the temperature range 723-773 K was carried out. The estimated activation energy value is lower than reported for toluene disproportionation in the literature. This has been explained on the basis of enhanced intracrystalline diffusion in the modified zeolite.