Halloysite is a naturally occurring clay mineral with submicron sized hollow cylindrical morphology. Halloysite morphology, structure and properties were characterized by using SEM, TEM, XRD, FT-IR spectroscopy, surface electrokinetic (zeta) potential and nitrogen adsorption isotherms. Comparison of the halloysite structure with imogolite was also provided. Halloysite toxicological studies revealed that it is environmentally friendly and biocompatible material. Due to its unique tubular shape and availability in thousands of tons halloysite has potential to be applied as nanocontainers for encapsulation of chemically and biologically active agents such as medicines, pharmaceuticals, antiseptics, corrosion inhibitors, antifouling agents, and doped with them plastics producing smart polymeric nanocomposites with improved mechanical strength. Finally possibility to synthesize metal nanorods within the halloysite lumen was demonstrated.