The epoxidation of propylene catalyzed by a reaction-controlled phase transfer catalyst [π-C 5H 5NC 16H 33] 3[PW 4O 16] is investigated. The H 2O 2 is generated by the oxidation of 2-ethylanthrahydroquinone (EAHQ) with molecular oxygen in the organic solvent. Under mild conditions, the selectivity for propylene oxide, based on propylene, is 95%, and the yield, based on 2-ethylanthrahydroquinone, is 85%. During the epoxidation, the catalytic system is homogeneous. However, after the H 2O 2 is used up, the catalyst can be recovered as a precipitate and can be reused. After the epoxidation reaction, 2-ethylanthraquinone can be regenerated to 2-ethylanthrahydroquinone by catalytic hydrogenation, and no coproduct is produced.