We report a new terpyridine-based FeN₃O catalyst, Fe(tpy^tbupho)Cl₂, which reduces O₂ to H₂O. Variable concentration and variable temperature spectrochemical studies with decamethylferrocene as a chemical reductant in acetonitrile solution enabled the elucidation of key reaction parameters for the catalytic reduction of O₂ to H₂O by Fe(tpy^tbupho)Cl₂. These mechanistic studies suggest that a 2 + 2 mechanism is operative, where hydrogen peroxide is produced as a discrete intermediate, prior to further reduction to H₂O. Consistent with this proposal, the spectrochemically measured first-order rate constant k (s⁻¹) value for H₂O₂ reduction is larger than that for O₂ reduction. Further, significant H₂O₂ production is observed under hydrodynamic conditions in rotating ring-disk electrode measurements, where the product can be swept away from the cathode surface before further reduction occurs.