Acetic acid is an important petrochemical that is currently produced from methane (or coal) in a three-step process based on carbonylation of methanol. We report a direct, selective, oxidative condensation of two methane molecules to acetic acid at 180°C in concentrated sulfuric acid. 13 C isotopic labeling studies show that both carbons of acetic acid originate from two methane molecules in a formal eight-electron redox reaction. The reaction is catalyzed by palladium and the results are consistent with the reaction occurring by tandem catalysis involving methane C-H activation to generate Pd-CH 3 species, followed by efficient oxidative carbonylation with methanol, generated in situ from methane, to produce acetic acid. Control Experiments suggest that the carbonylation occurs via the in situ oxidation of CH 3 OH to low levels of CO.