Remarkable selectivity is achieved in the cleavage of benzyl ethers using ball-shaped palladium nanocatalysts, Pd@MCM-48, in an MCM-48 matrix. The unique nanocatalysts not only feature unprecedented complete hydrogenolysis selectivity of a benzyl ether over hydrogenation of a double bond, but also demonstrate selective cleavage of unsubstituted benzyl ether over substituted benzyl ethers.