The birth of nanotechnology era has revolutionized materials science, catalysis and field of optoelectronics. Novel and unique phenomena emerge when material dimensions are reduced to ultra-small size regime and enter nanometre (2-100 nm) realm. Such novel materials are expected to replace bulk materials, offering lower cost of manufacturing and enabling progress in many areas such as solar cell, drug delivery, quantum communication and computing, catalysis and sensing applications. With the progress in nanomaterial synthesis and fabrication, the need for the state-of-art characterization techniques became obvious; such techniques help to establish a complete understanding of the nature and interactions of nanosized materials. In this thesis, the first part focuses on the synthesis of gold and ruthenium clusters, namely Au8, Au9, Au101, Ru3, Ru4 and AuRu3, using the well-established synthetic protocols in the literature. Apart from the standard lab-based characterization techniques such as nuclear magnetic resonance (NMR), UV-visible spectroscopy (UV-vis) and Fourier Transform Infra-red (FTIR), a less explored but useful technique far infra-red (far IR) spectroscopy, available at the Australian Synchrotron (AS), was employed to investigate the vibrational modes in these clusters. Peaks in the experimental far IR spectra were assigned unambiguously to specific vibrations by comparing with the ones generated via DFT calculations with the help of collaborators, group of Professor Gregory Metha, University of Adelaide. For the Au9 cluster, three significant gold core vibrations are observed at 157, 177 and 197 cm-1 in the experimental spectrum. In the case of the Ru3 cluster, only a single ruthenium core vibration is identified within the spectrum, at 150 cm-1 with the calculated force constant, k = 0.33 mdyne/Å. The Ru4 cluster exhibits two metal core vibrations at 153 and 170 cm-1 with force constants of 0.35 and 0.53 mdyne/Å, respectively. Substitution with a gold atom yielding a mixed metal AuRu3 cluster shifts the core transitions toward higher wavenumbers at 177 and 299 cm-1 with an increase in force constants to 0.37 and 1.65 mdyne/Å, respectively. This is attributed to the change in chemical composition and geometry of the metal cluster core. A combination of the DFT calculations and high quality synchrotron-based experimental measurements allowed the full assignment of the key transitions in these clusters. Next, these clusters were fabricated into heterogeneous catalysts by depositing on different metal oxide nanopowders. Synchrotron X-ray photoelectron spectroscopy (XPS) and X-ray absorption spectroscopy (XAS) studies were performed at the Australian Synchrotron and the Photon Factory synchrotron in Japan to investigate the electronic structure of Au8, Au9 and Au101 on TiO2 catalysts. The XPS analysis reveals that “as-deposited” Au8 and Au9 retain some un-aggregated clusters while Au101 show bulk-like gold. These findings are in line with TEM observations, where the aggregates (large particles, > 2 nm) of Au8, Au9 and Au101 are hardly seen under HRTEM. UV-visible diffuse reflectance spectroscopy (UV-vis DRS) studies show the absence of localised surface plasmon resonance (LSPR) peaks in these “as-deposited” clusters, suggesting they are below 2 nm in size. Importantly, the XAS spectrum of “as-deposited” Au9 clusters estimates that 60% of pure, un-aggregated Au9 clusters and 40% of bulk gold in the sample. Upon calcination under O2 and combined O2 and H2 (O2-H2), Au8, Au9 and Au101 clusters form larger nanoparticles (> 2 nm) with the appearance of LSPE peak in UV-vis DR spectra. In addition, majority of the phosphine ligands (that stabilise the gold core) dislodge and form phosphine oxide-like species by interacting with oxygen on the TiO2 surface. The third part focused on testing the catalytic performance of the supported Au8, Au9, Au101, Ru3, Ru4 and AuRu3 clusters on different TiO2, SiO2, ZnO and ZrO2 in benzyl alcohol oxidation. Au101-based catalysts display the highest catalytic activity with a turn-over frequency (TOF) up to 0.69 s-1. The high catalytic activity is attributed to the formation of large Au nanoparticles (> 2 nm) that coincides with the partial removal of capping ligands. Au8 and Au9 clusters which contain NO3- counter anions are found to be inactive in benzyl alcohol oxidation. Further work shows that the presence of NO3- species diminishes the catalytic activity. Monometallic ruthenium clusters, Ru3 and Ru4, are found to be inactive yet the bimetallic AuRu3 clusters are active in benzyl alcohol oxidation, suggesting the synergistic effect between ruthenium and gold metal. Investigation of catalytic testing parameters reveals that tuning selectivity of the product is possible through manipulating the reaction temperature. Finally, a joint experiment with Prof. Wojtek Wlodarski’s group at RMIT, Melbourne was undertaken to test the sensing ability of Au9 clusters for hydrogen detection. Au9 clusters were deposited onto radio-frequency (RF) sputtered WO3 films at two different concentrations; 0.01(S1) and 0.1(S2) mg/mL. It was found that the optimal temperatures for sensor S1 and S2 were 300 °C and 350 °C, respectively. The sensor with lower Au9 concentration (S1) displays a faster response and recovery time, and a higher sensitivity toward H2. HRTEM studies reveal that the sensor S1 contain a significant population of sub-5 nm Au nanoparticles which might be responsible for a faster rate of H2 adsorption and dissociation. The key finding in this study suggest that the addition of catalytic layer such as ultra-small Au9 clusters results in improved sensitivity and dynamic performance (response and recovery time) of H2 sensors. In summary, this thesis demonstrated that cluster-based nanomaterials have wide range of applications spanning from catalysis to sensing. Further improvements in material synthesis and use of multiple complimentary characterization techniques allowed better understanding of the nature of the key active species (metal nanoparticles) assisting design of catalysts and sensors with enhanced performance.