The present invention relates to an oxidation reaction catalyzed by a reaction controlled phase-transfer catalyst having the general formula of [R₁R₂R₃R₄N]_xH_y[A] or Q_mMO₃(L). The catalysts themselves are not soluble in the reaction medium, but can form an active species that is soluble in the reaction medium under the action of one of the reactants. The active species can in turn react selectively with another reactant. When one of the reactants is completely consumed, the catalyst will separated out from the reacting system and can be recovered by means of simple separation method. The recovered catalyst can be recycled with comparable efficiency as that of the original catalyst. The separation of said catalyst is similar to that of heterogeneous catalyst while said catalyst will completely exhibit the characteristics of homogeneous catalyst during the reaction. The catalytic oxidation reaction system is especially suitable for the large-scale industrial production of epoxy cyclohexane from cyclohexene or of epoxy propane from propylene.