Gold nanoparticles supported on magnesium oxide nanorods (Au-MgO) have been synthesised by a solution based chemical reduction method. Au-MgO nanorods were found to be an efficient heterogeneous catalyst for oxidation of alcohols with hydrogen peroxide in aqueous medium at room temperature. To find out the best reaction conditions for oxidation, optimization of catalyst quantity, solvent, mole equivalence of hydrogen peroxide were carried out. The scope of the reaction was extended to several aromatic and aliphatic alcohols, product yields were quantified by gas chromatography (GC) and GC/mass spectroscopy. Heterogeneity and reusability tests were performed. The use of water as a solvent and hydrogen peroxide as co-catalyst at room temperature makes the reaction interesting from sustainable development point of view.