Zirconia modified with $MoO_3$ was prepared by impregnation of powdered $Zr(OH)_4$ with ammonium heptamolybdate aqueous solution followed by calcining in air at high temperature. Spectroscopic studies on prepared catalysts were performed by using FTIR, Raman, XRD, and DSC and by measuring surface area. Upon the addition of molybdenum oxide to zirconia up to 15 wt%, the specific surface area increased in proportion to the molybdate oxide content, while acidity measured by irreversible chemisorption of ammonia exhibited a maximum value at 3 wt% of $MoO_3$. Since the $ZrO_2$ stabilizes the molybdenum oxide species, for the samples equal to or less than 30 wt%, molybdenum oxide was well dispersed on the surface of zirconia and no phase of crystalline $MoO_3$ was observed at any calcination temperature above $400^{circ}C$. The catalytic activities for cumene dealkylation were roughly correlated with the acidity of catalysts measured by ammonia chemisorption method, while the catalytic activities for 2-propanol dehydration were not correlated with the acidity because weak acid sites are necessary for the reaction.