The preparation, characterization, and catalytic properties of acid activated Indian bentonite (AAIB) are reported. AAIB has been characterized by XRD (basal spacing, 15.05 A...), specific surface area (273 m(2)/g), pore volume and pore diameter using BET method, TGA, SEM, and surface acidity by n-butylamine back titration method and infrared spectroscopy using pyridine as a probe molecule. The activity of Montmorillonite K10, ZrO2, S-ZrO2, p-toluenesulfonic acid (p-TSA), Indian bentonite (IB), and AAIB was investigated by the esterification of p-cresol with stearic acid. Among the catalysts, AAIB was found to be more active. The esterification of various carboxylic acids with phenols and alcohols was studied on AAIB to obtain corresponding esters in good yields. The regeneration and reusability of AAIB has also been investigated.