In the present study, the effects of ionic liquids (ILs) on the stability of nanoparticles in several IL compositions were investigated. In this context, we examined the primary role of ILs in the synthesis of metal/metal oxide nanoparticles and their dispersions extensively. However, the focus of the discussion in this communication centers mainly on the effect of EMIM Ethyl Sulfate on growth and stability of nanoparticles. The dispersion properties of ILs based on their ability to aid the synthesis of uniformly dispersed nanoparticles have been further explored to produce nanoparticles of an effective catalyst useful in water purification, soil remediation and battery applications. Two independent protocols were developed for the synthesis of nanoparticles, namely (a) one pot process via chemical reduction (b) dispersion of the inorganic material in ILs. The protocols are simple, sustainable and environmentally friendly because the processes are conducted in ILs as harmless non-toxic green solvent materials. The catalysts were analyzed by x-ray diffraction, electron microscopy, UV visible spectroscopy and dynamic light scattering as the main methodologies.