Anisotropic nanostructures of magnesium oxalate dihydrate were synthesized using cationic surfactant based microemulsion method. The cationic surfactant plays an important role in forming the anisotropic structures. The oxalate nanostructures acts as an excellent precursor for the synthesis of fine magnesium oxide nanoparticles (similar to 10 nm). Both the precursor and the oxide were characterized by using PXRD, IR, surface area and HRTEM. The surface area of these surfactant free oxide nanoparticles was found to be 108 m(2)/g. The catalytic activity of this basic oxide was examined for the Claisen-Schmidt condensation reaction and was found to be comparable to the best reported for the conventionally prepared MgO. Chalcone formation was found to increase with time as observed using gas chromatography-mass spectrometry (GC-MS). The reusability of the catalyst was checked by using the same catalyst twice which showed a reduced percentage (50% compared to first cycle) conversion. (C) 2010 Elsevier Inc. All rights reserved.