The catalytic oxidation of bio-ethanol to acetaldehyde entails a promising route for valorization of biomass into many important chemicals that are currently mainly being produced from fossil-based ethylene feedstock. We employ here DFT calculations to understand the unprecedented synergy between gold clusters and a MgCuCr2O4 spinel support, which shows excellent catalytic performance for the oxidation of ethanol to acetaldehyde (space-time yield of 311 gacetaldehyde.ggold-1.h-1 at 250°C). The investigations support a mechanism involving catalytic reactions at the gold-support interface. Dissociative adsorption of ethanol is facilitated by cooperative action of a gold atom at the metal cluster-support interface and a basic oxygen atom of th...