An iron oxide nanocatalyst supported on a potassium exchanged zeolite-Y (Fe2O3-KY) is an efficient and reusable catalyst that promotes the selective α-H functionalization of 2-naphthols with various aromatic primary alcohols. The reaction occurs at 110 °C in dichloroethane and requires 6 h for completion. The product yields were found to vary with respect to the nature of the substituents. Benzyl alcohols with electron-donating groups gave the highest yields of up to 90%.