Catalytic aerobic oxidation of benzyl alcohol (BnOH) to benzaldehyde (PhCHO) over supported noble metal catalysts has grabbed the attention of researchers due to the critical role of PhCHO in numerous industrial syntheses. In the present study, a novel catalyst, Pd-P alloy supported on aminopropyl-functionalized mesoporous silica (NH2-SiO2), was prepared through in situ reduction and characterized by BET-BJH analysis, SEM, TEM, XRD, FTIR, TG-DTA, and XPS. Chemical properties and catalytic performance of Pd-P/NH2-SiO2 were compared with those of Pd0 nanoparticles (NPs) deposited on the same support. Over Pd-P/NH2-SiO2, the BnOH conversion to PhCHO was much higher than over Pd0/NH2-SiO2, and significantly influenced by the nature of solvent, reaching 57% in toluene at 111 °C, with 63% selectivity. Using pure oxygen as an oxidant in the same conditions, the BnOH conversion increased up to 78%, with 66% selectivity. The role of phosphorous in improving the activity may consist of the strong interaction with Pd that favours metal dispersion and lowers Pd electron density.