The transformation of ethanol was carried out over vanadium silicate molecular sieves with MEL topology (VS-2) with different Si/V atomic ratios in the temperature range 523-623 K. The reaction was performed in a fixed-bed down-flow reactor at atmospheric pressure. Acetaldehyde, diethyl ether, and ethylene were the major products along with small amounts of acetone, acetic acid, ethyl acetate, and carbon oxides, The conversion increased while the selectivity toward acetaldehyde decreased with increase in reaction temperature, The kinetics of the reaction (at 5% conversion) indicated a nearly fist-order dependence of the rate of formation of the major products on ethanol. The formation of acetaldehyde is suggested to be mainly through the involvement of the vanadyl species (V=O) while diethyl ether production is controlled by the simultaneous involvement of V=O and V-O-Si associated with vanadium in the lattice, The intrinsic activity of vanadium incorporated into the zeolite framework is nearly 10 times that of the vanadium present in the impregnated sample. The nature of the sites involved in the formation of the different products, as elucidated from spectroscopic techniques (NMR and ESR), and the possible reaction mechanisms are proposed.