Cerium dioxide nanoparticles were prepared by the sol-gel method using cellulose as a template and used in the synthesis of 2-oxazolidinone from urea and 2-aminoethanol under solvent-free conditions. All the reaction parameters were optimized to obtain the best selectivity and conversion. The selectivity of 100 % to 2-oxazolidinone with a pretty complete conversion of about 98.4 % was achieved. The prepared catalyst was characterized by Scanning Electron Microscopy (SEM), X-ray Diffraction (XRD), and volumetric isothermal nitrogen gas adsorption-desorption method (BET).