Abstract: Fe-Al-P-O catalysts were prepared by sol-gel method. The physical and chemical characters and reactivity of the catalysts were studied by using techniques of IR, XRD, TEM, BET, TPR and micro-reactor. The experimental results revealed that Fe1/2Al1/2PO4 catalyst is a uniform compound of 10 nm particles FePO4 and AlPO4, in which FePO4 is highly-dispersed by AlPO4 and the activity of the lattice oxygen is higher than that in the single FePO4. The reactivity of Fe1/2Al1/2PO4 catalyst is obviously related with the feed composition. In case of propylene and oxygen only as the feed, the outcome is mainly acrolein. Addition of H2 into the feed stream leads to propylene oxide with some acrolein. Addition of H2O into the feed stream consisted of C3H6, H2 and O2, can effectively restrict the formation of by-product acrolein and increase the selectivity to propylene oxide. At a condition of 0.1MPa, 200℃, C3H6/O2/H2/H2O/N2(mol)=1:1:1:1:6 and space velocity of 1200 h-1, the propylene conversion of 8.9% and the propylene oxide selectivity of 81% can be obtained.