A new nitrile-tethered pyridinium polyoxometalate (POM) was prepared by anion-exchange of the ionic liquid precursor [N-butyronitrile pyridine]Cl ([C 3 CNpy]Cl) with the Keggin phosphovanadomolybdic acid H 5 PMo 10 V 2 O 40 (PMoV 2 ), and the obtained organic POM salt [C 3 CNpy] 4 HPMoV 2 was characterized by XRD, SEM, TG, 1 H NMR, 13 C NMR, ESI-MS, CHN elemental analysis, nitrogen sorption experiment, and melting point measure. When used as a catalyst, [C 3 CNpy] 4 HPMoV 2 causes the first example of reactioncontrolled phase-transfer hydroxylation of benzene with H 2 O 2 , showing high activity and stable reusability. Based on spectral characterizations and comparisons of reaction results, plus the reversible color change between fresh and recovered catalyst, a unique reaction mechanism is proposed for understanding the highly efficient [C 3 CNpy] 4 HPMoV 2 -catalyzed phase-transfer catalysis. The formation of dissolvable active species [VO(O 2 )] + is responsible for the phase-transfer behavior, while the intramolecular charge transfer and the protonated nitrile in cations accelerate the reaction and favor a better catalyst recovery rate.