Hydrodesulfurization (HDS) technique is no longer applicable in achieving ultra-low sulfur diesel because of high operational cost, high operating temperature and low efficiency. Due to these disadvantage, catalytic oxidative desulfurization (Cat-ODS) has been introduced as a new technique in achieving ultra-low sulfur diesel. The performance of the Fe catalyst was investigated in Cat-ODS of model diesel using terbutyl hydroperoxide (TBHP) as oxidant and dimethylformamide (DMF) as an extracting solvent. The physicochemical analysis of this catalyst was accomplished using several characterization techniques such as BET, EDX and HRTEM. It posseses high surface area of 226 m2g-1 with small particle sizes in the range of 6-7 nm and less metal leaching. Under optimize condition, about 90% of sulfur was removed from model diesel. In the absence of catalyst, only about less than 80% of organosulfur compounds were removed. The Cat-ODS system showed the promising technology to be compliment with hydrodesulfurization (HDS) to produce low sulfur diesel.