The role of tuning metal-support interaction in determining the catalytic activity and carbon formation in dry reforming of methane to syngas was examined over CeO2 supported Ni nanoparticles. The catalysts pre- and post- reaction were subjected to characterisation in terms of N-2 physisorption, TPR, XRD, TEM, XPS and TGA-DTG. Reduction of Ni/CeO2 in H-2 in the temperature range (773-973 K) generated a strong bonding between Ni and CeO2 that inhibited Ni particle sintering (8.7-9.4 nm). High-temperature (>= 873 K) reduction induced decoration/encapsulation of Ni nanoparticles by a thin layer of reduced ceria support with partial coverage of Ni surface. The decoration/encapsulation effect strongly influences the catalytic properties of Ni, which enables to tune the catalytic activity of Ni/CeO2 and carbon deposition in dry reforming of methane.