The laws of thermodynamics are usually formulated without setting restrictions on the size of the enviroment, and not much is known about machines that operate with small environments. We provide explicit protocols for the operation of machines that circumvent certain thermodynamic restrictions, which arise naturally in this context. Such machines are more precisely described as catalysts, as they can be used to perform otherwise impossible transformations. We establish sufficient conditions for catalytic transformations that cannot be achieved when the system interacts with a finite environment. From this key result we present various findings regarding the use of catalysts for cooling. First, we show that catalytic cooling is always possible if the dimension of the catalyst is sufficiently large. For the optimal catalytic cooling involving a cold qubit and a hot qubit, it is demonstrated that maximum cooling can be attained with a catalyst as small as a three-level system. Moreover, we show that in a multiqubit setup catalytic cooling based on a three-body interaction outperforms standard (non-catalytic) cooling with higher order interactions. We also demonstrate that even transformations that are allowed without catalysts can be enhanced through their use. Besides cooling, such advantage is illustrated in a thermometry scenario, where a qubit is employed to probe the temperature of the environment. In this case, we show that a catalyst allows to surpass the optimal temperature estimation attained only with the probe.