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Significant emphasis has been placed recently in engineering the catalytic environment beyond the active site for tuning the activity, selectivity, and stability of supported metal catalysts for targeted reactions. The environment around the active site in supported catalysts can be modified by introducing multi-dimensionality through alloying, encapsulation, and surface bound ligands. In this Review, we provide a summary of synthesis strategies that have enabled the design of multifunctionality and multidimensionality in heterogeneous supported catalysts. We specifically discuss alloys, encapsulated/inverted catalytic structures, and ligand capped metal nanoparticle systems. We highlight the effects on catalyst activity, selectivity and stability that arise from modifying the neighboring two-dimensional environment through alloying or three-dimensional environment through encapsulation with porous inorganic films or surface organic moieties. We conclude by providing a short perspective on the promises and remaining challenges associated with engineering the local environment around the active sites of supported heterogeneous catalysts.