A simple, mild and highly efficient biomimetic oxidation of alcohols to the corresponding aldehydes or ketones with hypervalent iodine(III) reagent catalyzed by beta-cyclodextrin was reported. beta-cyclodextrin serves as a biological catalyst to enhance the reaction remarkably. The oxidation proceeded in water to afford aldehydes or ketones in excellent yields and high selectivity without remarkable over-oxidation to carboxylic acids. Selective oxidation of primary alcohols in the presence of secondary alcohols was also achieved. A possible mechanism for the oxidation was proposed.