Ultra fine particles of Fe, Ni, Co and Mo with diameter of 5-20 nm were synthesized. The particles were stable under the atmosphere because they were surrounded with graphite sheet and amorphous carbon. Catalytic activities of them for hydrogenation of 1-methyl naphthalene were tested. It was found that ultra-fine particles of Ni-carbon composite had high catalytic activities. The kinetic analysis shows that more active hydrogenation catalysts can be prepared by bi-metallic clusters.