In this work we have prepared nanoparticles of palladium on modified bentonite using reverse micelle technique, and used in the Suzuki reaction. The prepared catalyst was characterized using FT-IR, XRD, BET, FE-SEM and ICP. By using this new catalyst, the Suzuki reaction was performed between aryl halides and phenylbronic acid. The amount of palladium used in this reaction was in the order of . The catalyst was active as a Suzuki catalyst in ethanol in air. The catalyst combines high activity and selectivity under ambient conditions (air and moisture), easy separation (filtration). The catalyst was recycled by filteration three times with no observed catalyst deactivation.