Herein, a straightforward synthesis method for highly mesoporous molybdenum oxide has been demonstrated via use of inverse micelles and molybdenum-oxo cluster formation. The synthesized catalyst is stable, crystalline, and MoO3 phase pure, as confirmed through thermogravimetric analysis, X-ray diffraction, and X-ray photoelectron spectroscopy. Further results from electron paramagnetic resonance, Raman spectroscopy, and UV–vis spectroscopy confirm the MoO3 phase purity. Chemisorption studies reveal that the synthesized material is 65 times more active than its commercial parts. The quantitative value of ammonia chemisorption for the synthesized catalyst is 1270 μmol/g, whereas the commercial catalyst only gives 22 μmol/g. These materials were tested for electrophilic substitution reactions since they are excellent solid acid. Electrophilic substitution of benzyl alcohol with toluene gives a >99% conversion with ∼80% of selectivity toward the methyl diphenylmethane product. The turnover number and turnover frequency values were calculated to be as high as 115 and 38, respectively. A substrate scope study shows that the reaction has preference toward electron-donating groups, whereas electron-withdrawing groups block the reaction. Based on the obtained results, a mechanism has been proposed.