In the present study, ZnO modified with rare earth oxides GdxMn; M=Mo, V, W) were synthesized by hydrothermal process and their catalytic activity was tested in an oxidative cyclization reaction for the selective synthesis of quinazolinones. The catalysts were characterized by various techniques such as BET surface area analysis, XRD, SEM‐EDX, DSC‐TGA, ICP‐MS and elemental color mapping. 5 wt% Gd2MoO6/ZnO exhibited good catalytic activity and gave 60–91% of Quinazolin‐4(3H) ones in toluene. The catalysts could be reused at least four times without loss of catalytic activity.