A liquid phase reaction of anhydrous GaCl(3) and AlCl(3) with the surface hydroxyl groups (with HCl evolution) of Mont. K-10 clay in dry CCL(4) under reflux resulted in a novel GaAlCl(x),-grafted Mont.K-10 catalyst [with Cl/(Ga + Al) = 1]. The catalyst showed high activity and stability in the Freidel-Crafts type benzylation and benzoylation (by benzyl chloride and benzoyl chloride, respectively) of benzene, naphthalene and substituted benzenes, even in the presence of moisture. It also showed good activity for the benzoylation of nitrobenzene (i.e. even in the presence of strong electron withdrawing group, like nitro group, attached to the benzene ring). The catalytically active surface species in the catalyst are -(O)(2)-Ga(or Al)Cl. (c) 2007 Elsevier B.V. All rights reserved.