Si-MCM-41 and Fe-MCM-41, were synthesized via the hydrothermal method with in situ incorporation of Fe (III) oxalate complex under alkaline conditions. The Fe/MCM-41 materials were synthesized via incipient wetness impregnation for comparison. The obtained materials were characterized by XRD. Both Fe-MCM-41 and Fe/MCM-41 have catalytic reactivity in Friedel - Crafts benzylation of benzen with high conversion and selectivity. Yield of diphenylmethane (DPM) was 100%. Fe-MCM-41 has higher reactivity than that of Fe/MCM-41.