An improved process is disclosed for the selective disproportionation of toluene. The process preferably uses a disproportionation catalyst comprising MFI bound with alumina phosphate. Running the process at a hydrogen to hydrocarbon ratio between 0.2 to 0.5 improves the yield of para-xylene. Optional periodic rejuvenation by increasing the hydrogen to hydrocarbon ratio removes some carbon deposits and restores catalyst activity.