A fluidized bed process for producing para-xylene via toluene and/or benzene methylation with methanol using a dual function catalyst system. A first catalyst accomplishes the toluene and/or benzene methylation and a second catalyst converts the by-products of the methylation reaction or unconverted methylating agent, improves the yields of the desired products, or a combination thereof. The inclusion of the second catalyst can suppress the C1-C5 non-aromatic fraction by over 50% and significantly enhance the formation of aromatics.