Ce and Al pillared clays were prepared by (i) pillaring Ce3+-exchanged montmorillonite with Al-13 polycation (Ce-Al-PILC) and (ii) by pillaring Na-montmorillonite with an oligomer obtained from cohydrolysis of Ce3+ and Al3+ salts (Al-Ce-PILC). Cohydrolyzed oligomer gives larger intercalating species with Ce3+ incorporated in it. The UV-DRS spectrum of clay sample intercalated with this species shows four distinct absorption bands at 224, 263, 294 and 342 nm, which are attributed to the 4f-5d interconfigurational transitions of Ce3+ ions associated with alumina pillars.