A new and direct procedure for the selective formation of para-iodotoluene from toluene is demonstrated for the first time using iodine monochloride (ICl) as the iodinating agent and zeolite H-beta as the catalyst. Zeolite H-beta and H.K-L are found to be more para-selective compared to other zeolite catalysts and the conventional catalysts, H2SO4 and SiO2. In the presence of a solvent (nitrobenzene) the conversion of ICl increases and the formation of side products (chlorotoluenes) decreases. The probable mechanism for the formation of iodotoluenes and some amount of chlorotoluenes involves the electrophilic attack of toluene by I+ and CL(+), respectively.