Size-controlled MgO nanocrystals were synthesised via a simple sol-gel method and their bulk and surface properties characterised by powder XRD, HRTEM and XPS. Small, cubic MgO single crystals, generated by low temperature processing, expose weakly basic (100) surfaces. High temperature annealing transforms these into large, stepped cuboidal nanoparticles of periclase MgO which terminate in more basic (110) and (111) surfaces. The size dependent evolution of surface electronic structure correlates directly with the associated catalytic activity of these MgO nanocrystals towards glyceryl tributyrate transesterification, revealing a pronounced structural preference for (110) and (111) facets.