Unsupported highly dispersed nanosized catalysts based on transition metal sulfides were prepared insitu, in water-oil emulsions, by high-temperature decomposition of oil soluble metal precursors using elemental sulfur as sulfiding agent. Their catalytic activity was tested in hydroconversion of 2-methylnaphtalene and dibenzothiophene at 380 °C under H2 pressure of 5 MPa. In addition, the catalysts were tested in the same reactions in the CO−H2O medium (p(CO) = 5 MPa, the CO: H2O molar ratio was 2: 1, ω(H2O) = 20 wt.%) in which hydrogen is formed through a water gas shift reaction (WGSR). Unsupported Ni−Mo-sulfide catalysts were found to be the most active compared to catalysts supported on alumina. Transmission electron microscopy served to investigate the structure and determine general geometric characteristics of Ni−Mo−S particles formed in toluene—water medium by decomposition of transition metal naphthenates and hexacarbonyls in the presence of elemental sulfur under CO pressure. The method described in this study enables one to synthesize nanosized catalysts with a high content of active sulfide phase.