Introduction of oxygen into aromatic C−H bonds is intriguing from both fundamental and practical perspectives. Although the 3d metal-catalyzed hydroxylation of arenes by H 2 O 2 has been developed by several prominent researchers, a definitive mechanism for these crucial transformations remains elusive. Herein, density functional theory calculations were used to shed light on the mechanism of the established hydroxylation reaction of benzene with H 2 O 2 , catalyzed by [Ni II (tepa)] 2+ (tepa = tris[2-(pyridin-2-yl)ethyl]amine). Dinickel(III) bis(μ-oxo) species have been proposed as the key intermediate responsible for the benzene hydroxylation reaction. Our findings indicate that while the dinickel dioxygen species can be generated as a stable structure, it cannot serve as an active catalyst in this transformation. The calculations allowed us to unveil an unprecedented mechanism composed of six main steps as follows: (i) deprotonation of coordinated H 2 O 2 , (ii) oxidative addition, (iii) water elimination, (iv) benzene addition, (v) ketone generation, and (vi) tautomerization and regeneration of the active catalyst. Addition of benzene to oxygen, which occurs via a radical mechanism, turns out to be the rate-determining step in the overall reaction. This study demonstrates the critical role of Ni-oxyl species in such transformations, highlighting how the unpaired spin density value on oxygen and positive charges on the Ni−O • complex affect the activation barrier for benzene addition.