Copper phthalocyanine (CuPc) encapsulated in zeolite Y was prepared by in situ ligand synthesis method by reacting Cu(II) exchanged NaY with 1,2-dicyanobenzene followed by Soxhlet extraction with several solvents. The encapsulated copper phthalocyanine, CuPcY(e) was characterized by chemical and thermal analyses, FT-LR, diffuse reflectance UV-Vis, and EPR spectroscopic techniques. The spectral studies unequivocally prove the encapsulation of CuPc in the alpha-cages of zeolite Y and suggest a distortion in the CuPc moiety. The encapsulated materials were more active than neat phthalocyanine in the epoxidation of styrene with tertiary butylhydroperoxide.