Calcination of an oxide mixture consisting of 0.4 La2O3, 0.2 SrCO3,(1−x)NiO, andxMgO at800∘Cresults in an equilibrium between tetragonal(La1−zSrz)2Ni1−yMgyO4−δphase and NiO-MgO phase. Forming rock-salt NiO-MgO facilitates the NiO to join the tetragonal phase. The size of the NiO-MgO phase in the resulting composite is reduced with the increase in MgO (thexvalue). The composite thus obtained is used to catalyze partial oxidation of methane, and the maximum methane conversion of ca. 93% is achieved whenx=0.2. A further rise inxvalue results in a monotonic decrease in the methane conversion. X-ray diffraction, electron microscopy, and chemosorption all confirm a decrease in both size and amount of the supportedNi0clusters with the increase in MgO dosage. The reduction in size promotes the dispersion ofNi0sites and gives rise to both high activity and strong coking resistance.