The epoxidation of propylene catalyzed by a reaction-controlled phase transfer catalyst [pi-C5H5NC16H33](3)[PW4O16] is investigated. The H2O2 is generated by the oxidation of 2-ethylanthrahydroquinone (EAHQ) with molecular oxygen in the organic solvent. Under mild conditions, the selectivity for propylene oxide, based on propylene, is 95%, and the yield, based on 2-ethylanthrahydroquinone, is 85%. During the epoxidation, the catalytic system is homogeneous. However, after the H2O2 is used up, the catalyst can be recovered as a precipitate and can be reused. After the epoxidation reaction, 2-ethylanthraquinone can be regenerated to 2-ethylanthrahydroquinone by catalytic hydrogenation, and no coproduct is produced. (C) 2003 Elsevier B.V. All rights reserved.