Ultrafine CeNi SBA‐15 supported tar removal catalysts were developed using a combined process of ethylene glycol (EG) assisted ball‐mill dispersion protocol that retained the integrity of the SBA‐15 support. The synergy of ball mill and ethylene‐glycol addition achieved a remarkable high Ni dispersion of nano‐particle size below 3 nm which improved Ni performance on reforming of toluene as a tar model compound formed during biomass gasification. This new protocol enabled the synthesis of ultrafine CeNi supported catalysts leading to an >99 % toluene conversion as model tar compound where the Ce addition virtually removed all coke formation that lead to inhibition of the Ni only catalyst.