The selective oxidation of olefins by molecular oxygen holds great importance in the chemical industry due to its remarkable adaptability in constructing carbonyl compounds. Classical homogeneous Wacker oxidation with a complex system of PdCl2-CuCl2-H2O is currently employed in the industrial production of acetaldehyde, which suffers from several key drawbacks. The development of alternative heterogeneous catalytic systems for Wacker-type oxidations has been hotly pursued for decades. Herein, we report a novel heterogeneous catalyst, namely Pd@FAU containing exclusive singular Pd sites confined in zeolite, showing remarkable performance in the Wacker-type oxidation of light olefins to the corresponding carbonyl compounds. Typically, stable propylene conversion rates of 2.3-3.5 mol/molPd/min and an acetone selectivity of 75-89% can be achieved simultaneously, surpassing the state-of-the-art homogeneous Wacker oxidation systems. In situ spectroscopic investigations disclose the spontaneous redox cycle of Pd+-Pd2+-Pd+ in Pd@FAU during the reaction, in significant contrast to the known Pd2+-Pd0-Pd2+ redox cycle. Theoretical calculations reveal the unique reaction pathway and mechanism of Wacker-type oxidation over Pd@FAU, without the participation of water as the nucleophile. Overall, a novel heterogeneous catalyst of Pd@FAU has been developed for Wacker-type oxidations with the unique reaction mechanism fully interpreted. This study will contribute to more sustainable Wacker-type oxidations and further improve the current understanding of Pd redox catalysis.