CdS nanoparticles were precipitated by the reaction of cadmium acetate with sodium sulphide in the presence of cetyltrimethylammonium (CTA) and deposited on montmorillonite (MMT). The resulting CdS-MMT nanocomposite contained 6 wt.% of CdS and 30 wt.% of CIA. Band-gap energy of CdS was estimated at 2.63 +/- 0.09 eV using the Tauc plot. The size of CdS nanoparticles was calculated from the band-gap energy at 5 nm and from the micrographs of transmission electron microscopy (TEM) at 5 nm. Selected area electron diffraction (SAED) recognized the cubic structure of CdS (Hawleite). The dynamic light scattering (DLS) method confirmed that CdS nanoparticles were anchored on the surface of MMT particles. CTA was found to be intercalated into MMT and adsorbed on its external surface. CdS-MMT was used for the photoreduction of carbon dioxide dissolved in NaOH solutions. The yields of originating gas products can be arranged in the order: H-2 >> CH4 > CO. Amounts of these products were 48 folds higher then those obtained with TiO2 Evonic P25. Hydrogen reduced CO2 to CO and CH4. (C) 2011 Elsevier Inc. All rights reserved.