Rh-0-nanoparticles of around 5 nm size distributed homogeneously into the nanopores of acid activated Montmorillonite clay were generated by incipient wetness impregnation of RhCl3, followed by reduction with ethylene glycol. Acid activation of the Montmorillonite clay was carried out by treating with H2SO4 under controlled condition to increase the surface area by generating nanopores upto about 10 nm sizes, which act as a host and stabilize nanoparticles into the pores. The synthesized Rh Rh-0-nanoparticles-clay composites characterized by PXRD, SEM-EDX, HRTEM, XPS and N-2-adsorption confirm generation of Rh-0-nanoparticle below 5 nm size and fully reduced to metallic state. The supported metal nanoparticles serve as efficient heterogeneous catalyst for reduction of some important aromatic carbonyl compounds leading to corresponding alcohols through transfer hydrogenation up to 100% conversion (GC) and selectivity, where isopropanol was used as both solvent and reductant. The catalyst remained active for several runs without significant loss of its catalytic activities. (C) 2013 Elsevier B.V. All rights reserved.