Catalytic oxidation of propane to produce propene was investigated over molybdenum-based mixed oxide catalysts. Cobalt of magnesium oxide combined with molybdenum oxide exhibits the best catalytic performance for the oxidative dehydrogenation of propane. Catalytic activities of both Co-Mo-O and Mg-Mo-O vary drastically on the catalyst composition and Co(Mg)_0.95Mo_1.0O_x having small amounts of free MoO₃ on the Co(Mg)MoO₄ surface shows the highest catalytic activity keeping a considerably high selectivity to propene. The catalytic activity also depends strongly on the acidic properties of catalysts and MoO₃ clusters formed on the surface of Co(Mg)MoO₄ are responsible for the activities for the oxidative dehydrogenation of propane.