Metal nanoparticles supported montmorillonite with innovative characteristics has led to a new generation of heterogeneous "nanocatalyst." Such catalysts are superior to the conventional catalysts because of several factors like: higher surface area; higher activity; higher selectivity and longer life and thus, developing a newer type of sustainable environmentally friendly catalysts. Metal clay supported nanocatalysts may find a wide range of applications in the area of fine and bulk chemical industries, pharmaceuticals, fuel cell, petroleum refineries, environmental catalysis, and many other fields. This article summarizes the recent advances in the synthesis and characterization of metal nanoparticles supported on modified montmorillonite and their catalytic applications for fine chemicals synthesis.