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Environmentally sustainable and selective conversion of methane to valuable chemicals under ambient conditions is pivotal for the development of next-generation photocatalytic technology. However, the lack of microscopic knowledge on its reaction mechanism prevents the development of engineering strategies for methane photocatalysis. Here we introduce key molecular-level insights into the photocatalytic green utilization of methane. Activation of the robust C–H bond of methane is hardly induced by the direct interaction with photogenerated holes trapped at the surface of photocatalyst ; instead, the C–H activation is significantly promoted by the photoactivated interfacial water species. The interfacial water hydrates and properly stabilizes hydrocarbon radical intermediates, thereby suppressing their overstabilization. Owing to these water-assisted effects, the photocatalytic conversion rates of methane under wet conditions are dramatically improved by typically more than 30 times at ambient temperatures (～300 K) and pressures (～1 atm) in comparison to those under dry conditions. [ABSTRACT FROM AUTHOR]