Alkylation of phenolics with alcohols is an efficient way to retain carbon from small oxygenates in the liquid products of pyrolysis bio-oil. In this contribution, we have investigated the alkylation of m-cresol with several alkylating agents over H-Beta zeolite. The alkylation activity follows the sequence 2-propanol > propylene > 1-propanol. In all cases, propylene is the actual alkylation agent since the alcohols dehydrate at a faster rate than the rate of alkylation. A two-stage process is proposed to convert fractions of bio-oil rich in small aldehydes and ketones together with phenolics. In the first stage, aldehydes and ketones are selectively hydrogenated to alcohols. In the second stage, the resulting alcohols alkylate the phenolic compounds and get incorporated into the upgraded liquid. To illustrate this concept, two consecutive catalyst beds have been used. The first bed contains a metal catalyst for the selective hydrogenation. Among several catalysts investigated, Cu/SiO2 and Pt-Fe/SiO2 were found to exhibit good selectivity to hydrogenate the aldehyde and ketone, respectively, while preserving the aromatic ring of the phenolic compound. The second bed contains an H-Beta zeolite for the alkylation stage. (c) 2012 Elsevier B.V. All rights reserved.