The catalytic activity of ZSM-5 catalyst for the disproportionation of toluene is dependent on the type of cation exchanged, the degree of ion-exchange and the reaction temperature. The activity increases in the order of alkaline-, alkali earth-, hydrogen, and rare-earth-exchanged ZSM-5 and decreases with increasing degree of cation exchange. Among the ion-exchanged ZSM-5 catalyst, only Cs-ZSM-5 shows predominant selectivity for p-xylene. The selectivity increases with increasing degree of $Cs^+$-exchange and decreasing reaction temperature. This phenomenon is interpreted in terms of shape selectivity arising from the partial blocking of channel intersections by large cesium ions.