Synthesis of p-tolyl stearate, catalyzed by acid activated Indian bentonite (AAIB) is reported. The esterification of stearic acid (SA) and p-cresol (p-C) gave p-tolyl stearate in high yield using acid activated Indian bentonite as the catalyst. White montmorillonite exchanged with Al3+ and treated with HCl gave 49 and 51% of the ester respectively after 12 h. Use of p-toluenesulphonic acid as catalyst gave 82% yield of the ester after 12 h in toluene. When the reaction was conducted in toluene and o-xylene with Indian bentonite treated with H2SO4 the yields were 89 and 97% (molar ratio, SA:p-C = 1:4) respectively after 12 h. Effects of molar ratio, amount of the catalyst, solvent, reaction time and catalyst activation temperature on the yield of p-tolyl stearate and reusability of the clay catalyst are investigated.