"Supercritical" (dense) carbon dioxide has been applied as solvent for the partial oxidation of benzyl alcohol with molecular oxygen in a fixed-bed reactor. High rate and good selectivity to benzaldehyde (93-97%) has been achieved with 0.5 wt% Pd/alumina or 0.5 wt% Pd/C, at around 100 degreesC and 100 bar, using only moderate excess of oxygen. The by-product benzoic acid has an autocatalytic effect on the hydration of benzaldehyde, and the subsequent oxidative dehydrogenation leads to benzoic acid, and benzyl benzoate by esterification. Promotion of Pd by Pb improves the selectivity, No catalyst deactivation or metal leaching has been observed. The method provides reasonable yields at much lower temperature than that applied in conventional gas phase oxidation. showing a potential for the synthesis of thermolabile, water-insoluble aromatic aldehydes.