Nickel(0) nanoparticles, generated from nickel(II) chloride, lithium powder and a catalytic amount of 4,4-di-tert-butylbiphenyl (DTBB) in THF at room temperature, have been found to promote the reduction of a variety of ketones and aldehydes by transfer hydrogenation using isopropanol as the hydrogen donor. The nickel nanoparticles were characterised and could be re-utilised with a good performance in the absence of a base. A mechanistic study demonstrates that the reaction proceeds through a dihydride-type mechanism. (C) 2007 Elsevier Ltd. All rights reserved.