Rhodium nanoparticles (Rh NPs) were prepared according to a green method based on the reduction of (acetylacetonato)dicarbonylrhodium(I), Rh(acac)(CO)2, in water at 80 °C. The nanoparticles, which were obtained without the addition of a reducing agent, were stabilized by polyvinylpyrrolidone (PVP) or polyvinyl alcohol (PVA) polymers and characterized by TEM (transmission electron microscopy), XPS (X‐ray photoelectron spectroscopy), and XRD (X‐ray powder diffraction) methods. The excellent catalytic activity of these Rh NPs was evidenced in the hydrogenation of benzene to cyclohexane. In the presence of PPh3, Rh NPs formed a highly active system in the hydroformylation of 1‐hexene. In this system, they acted as a source of soluble rhodium species. Rh NPs were also synthesized in water using rhodium(II) acetate, Rh2(OAc)4, and rhodium(III) chloride, RhCl3, as rhodium sources, and their catalytic activity was compared with that of the rhodium precursors.