A pseudohomogeneous method of catalytic cracking of hydrocarbon fuels using a highly dispersed nano-HZSM-5 catalyst is developed. Hydrophilic nano-HZSM-5 is transformed into a hydrophobic form via organic silanization of the zeolite surface, which makes it dispersible in a model endothermic fuel such as n-dodecane. Compared with thermal cracking, catalytic cracking of n-dodecane with highly dispersed nano-HZSM-5 catalyst exhibits remarkably enhanced conversion.