Ultrasonication of aqueous KI solution is known to yield I2 due to reaction of iodide ions with hydroxyl radicals, which in turn are generated due to cavitation. Based on this conceptual framework, a model has been developed to predict the rate of iodine formation for KI solutions of various concentrations under different gas atmospheres. The model follows the growth and collapse of a gas-vapour cavity using the Rayleigh-Plesset bubble dynamics equation. The bubble is assumed to behave isothermally during its growth phase and a part of the collapse phase. Thereafter it is assumed to collapse adiabatically, yielding high temperatures and pressures. Thermodynamic equilibrium is assumed in the bubble at the end of collapse phase. The contents of the bubble are assumed to mix with the liquid, and the reactor contents are assumed to be well stirred. The model has been verified by conducting experiments with KI solutions of different concentrations and using different gas atmospheres. The model not only explains these results but also the existence of a maximum when Ar-O2 mixtures of different compositions are employed.