Reverse micellar route methodology was adopted for the synthesis of nano-calcium deficient Hydroxyapatite(nano-CDHA). The synthesized compound was characterized for the presence of nano-CDHA using X-ray Diffraction, Fourier Transform Infra-Red Spectroscopy, Energy Dispersive X-ray Spectroscopy and Transmission Electron Microscope. Application of nano-CDHA for bone implants was evaluated using MTT assay. The drug release of cefalexin when loaded with the synthesizednano-CDHA was studied and the drug release kinetics at the physiological pH was found. The catalytic activity of nano-CDHA was proved from the gasoline synthesis from ethanol and Michael’s addition reaction of acetophenone and thiophenol over nano-CDHA. The gas sensing property of nano-CDHA was also evaluated and the kinetic model for gas detecting system was obtained.