Slurry-phase hydrocracking of vacuum residue using a dispersed catalyst has been investigated in this work. The liquid yield and coke formation in this process mostly depend upon the catalyst particle size and its distribution. Three emulsion methods, colloidal emulsion liquid. (CEL), emulsion liquid membrane (ELM), and reverse micelle (RM), are used to synthesize the dispersed MoS2 catalyst. Dynamic light scattering results show that the colloidal particle of molybdenum sulfide in the RM catalyst is smaller in size and narrowly distributed in comparison to the catalysts prepared by CEL and ELM methods. Our scanning electron microscopy and transmission electron microscopy analysis results also support the smaller particle size; of the active metal in the RM catalyst. Hydrotreating and hydrocracking activities of the RM catalyst are higher, and it is due to its smaller particle size and its narrow distribution. Moreover, coke formation in this catalyst is very low. It is found that the residue (550 degrees C+ hydrocarbons) is mostly converted into the middle distillates and vacuum gas oil by this catalyst. A lower mole percentage of unconsumed hydrogen in the gaseous product and higher hydrogen/carbon ratio in the liquid product also indicate the higher hydrogenation activity of the RM catalyst. The total liquid yield in this catalyst is also higher, suggesting the deep hydrocracking of the large hydrocarbons. Therefore, the RM emulsion is a suitable method to prepare the residue hydrocracking catalyst with proper morphology.