The Mo8O26(C5H6N)4.H2O hybrid with rectangular prism morphology was synthesized via a simple wet chemical method at room temperature in water. The as‐synthesized product was characterized by different methods, including X‐ray diffraction (XRD), transmission electron microscopy (TEM), scanning electron microscopy (SEM), thermogravimetric analysis (TGA), Fourier transform infrared spectroscopy (FT‐IR), Raman spectroscopy, N2‐adsorption/desorption and elemental analysis. The Mo8O26(C5H6N)4.H2O hybrid catalyzed Knoevenagel condensation reaction as a bi‐functional catalyst. Moreover, the molybdenum (VI) site in this hybrid catalyzed selective oxidation of alcohols in the presence of molecular oxygen (O2) as oxidant. The reaction of malononitrile with various aromatic aldehydes was carried out in aqueous media under mild temperature in the presence of no extra base or acid. On the other hand, the oxidation of alcohols with molecular oxygen progressed via a reusable heterogeneous system in a mild temperature. The reused catalysts from both systems were identified by XRD, FT‐IR, SEM and elemental analysis.