The epoxidation of propylene with hydrogen peroxide in the liquid phase, in the presence of titanium silicalite catalyst (TS-1), is described. The best solvents are methanol and methanol/ water mixtures. The temperature is normally between room temperature and 60°C. Under these conditions, reaction rates are fast, yields on H2O2 are quantitative, and selectivity to propylene oxide is very high. Propylene glycol and its monomethyl ethers and trace amounts of formaldehyde are the only by-products formed. Selectivity is further improved and the hydrolysis of the epoxide is almost suppressed when the residual acidity of the catalyst is completely neutralized. The activity of spent catalyst is recovered by calcining at 550°C or, more simply, by washing with solvents. Complete activity recovery shows that Ti is not removed from the crystalline framework during the epoxidation reactions.