Iron oxide (Fe2O3) offers Lewis acidic sites for alkylation but gives low yield and cannot be reused. Therefore, spinels belonging to system CuCr2-xFexO4 were prepared by isomorphic substitution of octahedral chromium by iron in the spinel lattice. These were found to have better catalytic activity for the liquid phase alkylation of benzene with benzyl chloride giving diphenylmethane. CuFe2O4 gives the highest yield. The Lewis acidity of the catalysts is mainly responsible for the good catalyst performance. The ease of electron movement appears to improve the yields. The propel ties of these catalysts were characterized by using DRIFT spectroscopy. The effects of various parameters on the catalytic reaction have been investigated.