The role of vanadium oxide and palladium on the benzene oxidation reaction over Pd/Vb>2b>Ob>5b>/Alb>2b>Ob>3b> catalysts was investigated. The Pd/Vb>2b>Ob>5b>/Alb>2b>Ob>3b> catalysts were more active than Vb>2b>Ob>5b>/Alb>2b>Ob>3b> and Pd/Alb>2b>Ob>3b> catalysts. The increase of vanadium oxide content decreased the Pd dispersion and increased the benzene conversion. A strong Pd particle size effect on benzene oxidation reaction was observed. Although the catalysts containing high amount of V4+ species were more active, the Pd particle size effect was responsible for the higher activity.