Iron(II)-8-quinolino/MCM-41 is prepared. Its catalysis is studied in phenol hydroxylation using H2O2 (30%) as oxidant. The experiment shows that Iron(II)-8-quinolinol/MCM-41 has good catalytic activity and desired stability. Based on cyclic voltammetry, ESR, and UV-visible spectra studies of iron(II)-8-quinolinol complex in liquid phase, a radical substitution mechanism is proposed and used to demonstrate the experimental facts clearly.