The functionalized ionic liquids (ILs) of N‐n‐dodecyl pyridinium vanadate (1), N‐(propyl‐1‐sulfonic acid) pyridinium tetrafluoroborate (2), and 4‐(propanoate‐2,2,6,6,‐tetramethylpiperidine‐1‐oxyl) pyridinium tetrafluoroborate (5) were synthesized. The mixture of 1, 2, and 5 in [Bpy]BF4 yielded the compatible IL compositions (ILCs) as a homogenous mixture, which proved to be an efficient catalytic system for oxidation of a wide range of alcohols using H2O2. With the aid of 2 and 5, 1 in [Bpy]BF4 could easily be recovered and reused for at least six runs without a loss in activity. UV/Vis spectroscopic analysis indicated that the role of 2 was to promote the formation of the active peroxo VV species, which is responsible for substrate activation, and the role of 5 was to oxidize the low‐valent vanadium(II–IV) species to regenerate 1.