Commercially available zeolite Y modulates the catalytic activity and selectivity of ultrasmall silver species during the Buchner reaction and the carbene addition to methylene and hydroxyl bonds, by simply exchanging the counter cations of the zeolite framework. The zeolite acts as a macroligand to tune the silver catalytic site, enabling the use of this cheap and recyclable solid catalyst for the in situ formation of carbenes from diazoacetate and selective insertion in different C-H (i.e., cyclohexane) and C-O (i.e., water) bonds. The amount of catalyst in the reaction can be as low as ≤0.1 mol % silver. Besides, this reactivity allows deeply drying the HY zeolite framework by making the strongly adsorbed water molecules react with the in situ formed carbenes.