Kinetic study of oxidation of toluidine blue (TB+) by periodate was carried out in aqueous medium and also in the cetyl trimethyl ammonium bromide (CTAB) reverse micellar medium. In both the media reaction obeys first order kinetics with respect to each of the reactants. In the reverse micellar medium, the reaction is forty times faster compared to aqueous medium under identical experimental conditions. The pronounced acceleration is accounted for by the lower micro polarity and the concentration effect present in the bound water of reverse micelles. In CTAB reverse micellar medium, the pseudo first order rate constant (k’) of the reaction is almost constant at all values of W, {W=[H2O]/[CTAB]} indicating that the reaction takes place on the micellar surface and results were explained by modified Berezin pseudo phase model..