Density functional theory calculations were employed to study partial oxidation of propylene on a [Ag 14 O 9 ] cluster representing Ag 2 O (001) surface for which positive effect for ethylene oxide formation has been reported in our earlier work at the same level of theory (Fellah et al., Catal Lett 141:762, 2011). Propylene oxide (PO), propanal, acetone and G-allyl radical formation reaction mechanisms were investigated. P-allyl formation path and two propylene adsorption paths resulting in PO formation are competing reactions on silver oxide (001) surface because of their comparable activation barriers (9, 8 and 9 kcal/mol, respectively) while P-allyl formation path is generally a more favorable path on Ag (111) surface as reported in previous theoretical literature. SO 2 adsorption calculations indicate that silver oxide has lower Lewis basicity relative to oxygen atom adsorbed on silver. Calculations also showed that surface oxygen atom of Ag 2 O (001) has a higher spin density compared to that of oxygen atom adsorbed on Ag (111), which indicates that oxygen atom on Ag 2 O (001) cluster has a more radical character.