Using in situ generated H 2 O 2 is potentially an effective approach for benzyl alcohol selective oxidation. While the microporous titanium silicate (TS-1) supported with Pd is promising for selective oxidation, the Pd particles are preferentially anchored on the external surface, which leads to the problems such as non-uniform dispersion and low thermal stability. Here, we prepared a Pd@HTS-1 catalyst in which the Pd subnanoparticles were encapsulated in the channels of the hierarchical TS-1 (HTS-1), for benzyl alcohol selective oxidation with in situ produced H 2 O 2 . We find that the oxidation rate of benzyl alcohol by in situ H 2 O 2 over the Pd@HTS-1 is up to 4268.8 mmol h –1 kg cat –1 , and the selectivity of benzaldehyde approaches 100%. In contrast to the conventional Pd/HTS-1, the present Pd@HTS-1 benefits the benzyl alcohol selective oxidation due to the increased dispersion of Pd particles (forming uniformly dispersed subnano-sized particles), as well as the confinement effect and hierarchical porosity of the HTS-1 host. We further suggested that hydrogen peroxide produced in situ from the molecular hydrogen and oxygen over the Pd sites can be spilled over to the framework Ti 4+ sites, forming the Ti-OOH active species, which selectively oxidizes the chemisorbed benzyl alcohol to benzaldehyde on the Pd sites.