Phenol, an important bulk organic compound, has diverse applications encompassing both industry and society. Commercially, it is produced through energy intensive three-step cumene process operating at relatively low yield with the co-production of acetone. Several attempts were made for producing phenol through challenging one-step direct hydroxylation of benzene using different oxidants like O2, N2O and H2O2. Liquid phase hydroxylation of benzene using H2O2 found to be more attractive due to its low reaction temperature and environmentally friendly nature (as water is only formed as by-product). The hydroxylation reaction occurs through Fenton’s mechanism; however along with phenol several other products are also formed due to higher reactivity of phenol compared to benzene. Our research group has been working on this reaction for nearly a decade using layered double hydroxides (LDHs) and their derived forms as heterogeneous selective oxidation catalyst. Screening of different LDHs having different metal ions in the layers revealed the necessity of copper for hydroxylation in pyridine. Addition of co-bivalent metal ion along with copper was made in an endeavour to improve the activity that revealed the promising results for CuZnAl LDHs. Efforts were then made to shift from pyridine to environmentally benign solvent, water, for this reaction that showed reasonably good yields with very high selectivity of phenol. Addition of small amount of sulfolane as a co-solvent increased the selectivity for phenol further. The reusability difficulty faced while using as-synthesized LDHs was overcome when calcined LDHs were used. Structure–property-activity relationships were deduced to understand the results observed. The present review besides covering our work also provides the state-of-art on this reaction using different oxidants with emphasis on H2O2.