Lipophilic walnut shell and perlite-supported Palladium nanoparticles were found to be highly efficient recoverable solid catalyst for the aerobic oxidation of benzylic and aliphatic alcohols under air atmosphere in aqueous media. These catalysts were prepared by lipophilization of walnut shell powder and expanded perlite by Zycosil, followed by immobilization of nanoparticles without any external reducing agent. These catalytic systems provide benzylic and aliphatic aldehydes and ketones in high yields and selectivity by aerobic oxidation corresponding alcohols under air atmosphere. These reusable green catalysts were characterized by Fourier-transform infrared spectroscopy (FT-IR), atomic adsorption, N2 adsorption/desorption porosimetry and transmission electron microscope. It showed the isolated palladium 5–18 nm and 6–22 nm nanoparticles for Lipophilic walnut shell and perlite-based catalyst, respectively. Moreover, the cytotoxic potential of the preparation of lipophilic walnut shell powder and lipophilic expanded perlite against erythroleukemia K562 cancer cell lines and peripheral blood mononuclear cells as normal cells were evaluated.