Abstract: A deactivated catalyst comprising a nonacidic zeolite and a Group VIII metal is regenerated by a two-step carbon burn process. The first oxidation step contacts the nonacidic zeolite catalyst with a halogen-free gaseous stream comprising oxygen and an inert gas at a first temperature sufficient to combust carbonaceous material while maintaining a substantial portion of the active Group VIII metal surface area withn the micropores of the nonacidic zeolite for a first period of time sufficient to substantially complete combustion of at least a portion the carbonaceous material at the first temperature. The second step contacts this nonacidic zeolite catalyst with a gaseous stream comprising oxygen and an inert gas at a second temperature sufficient to combust any remaining carbonaceous material for a second period of time sufficient to maintain a substantial portion of the active Group VIII metal surface area in the micropores of the nonacidic zeolite catalyst.