Styrene oxide is an important precursor to prepare 2-phenyl ethanol (2-PEA) of high quality for its use as a fragrance chemical. Styrene oxide was selectively hydrogenated to 2-PEA with polyurea-microencapsulated (En Cat) Pd, Pd-Rh and Pd-Cu nanocatalysts with methanol as solvent and NaOH as promoter. The catalysts were fully characterized to understand their activity, selectivity, and stability. Pd-Cu En Cat was used for further studies. Complete conversion of styrene oxide with 92% selectivity to 2-PEA was obtained over Pd-Cu En Cat at 333 K and 607.8 k Pa. Effects of various parameters were studied to understand the product profile. A bifunctional Langmuir-Hinshelwood-Hougen-Watson (LHHW) mechanistic model was proposed. The kinetics of reaction was established and tested against experimental data. The results are new and provide a green and cost-effective process for the synthesis of 2-PEA.