Linalool and nerol are bio-renewable substrates found in many essential oils. Pd(OAc)2/p-benzoquinone system catalyses the aerobic oxidation of linalool and nerol. No requirement in auxiliary electron-transfer mediators under 5–10 atm of oxygen. Sterically encumbered internal acyclic olefinic bonds are involved in the oxidation. Fragrant poly-functionalized monoterpenoid compounds are obtained in good yields.