A series of zirconia supported ammonium salt of molybdophosphoric acid (AMPV) catalysts with and with out vanadium incorporation are prepared in a single step adopting wet impregnation method. These catalysts are characterized by BET surface area, XRD, FT-IR and potentiometric titration. XRD and FT-IR techniques suggest the formation of Keggin ion on zirconia support. The high resolution FT-IR analysis reveals the incorporation of vanadium into the primary structure of Keggin ion. The catalytic functionalities of these catalysts are tested for the aerobic oxidation of benzyl alcohol. The vanadium containing AMPV results in higher selectivity towards the oxidation product compared to the catalyst without vanadium incorporation.